A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800. The cost of goods sold for this company is:
A) $21,200.
B) $29,300.
C) $32,500.
D) $47,100.
E) $27,600.

Question

Quizplus · Accepted Answer

To calculate the cost of goods sold, we use the formula:

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

Substituting the given values:

Cost of Goods Sold = $14,600 + $32,500 - $17,800 
Cost of Goods Sold = $29,300

Therefore, the answer is B.

A Manufacturing Company Has a Beginning Finished Goods Inventory of $14,600