Holden Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $56,000 and the cost of goods sold during the month was $125,000. The cost of goods manufactured during July was:
A) $104,000.
B) $125,000.
C) $117,000.
D) $133,000.
E) None of the other answers are correct.

Question

Quizplus · Accepted Answer

Using the formula for cost of goods sold:

Cost of Goods Sold = Beginning Inventory + Cost of Goods Manufactured - Ending Inventory

$125,000 = $48,000 + Cost of Goods Manufactured - $56,000

Solving for the Cost of Goods Manufactured, we get:

Cost of Goods Manufactured = $133,000

Holden Industries Began July with a Finished-Goods Inventory of $48,000