Figure 2-4. Junko Company makes financial calculators.During the year Junko manufactured 97,000 financial calculators.Finished goods inventory had the following units on hand:
Refer to Figure 2-4.If each financial calculator has a per-unit product cost of $112,what was the cost of goods sold last year?
A)$10,864,000
B)$10,839,360
C)$11,005,120
D)$10,888,640

Question

Figure 2-4. Junko Company makes financial calculators.During the year Junko manufactured 97,000 financial calculators.Finished goods inventory had the following units on hand:
 Refer to Figure 2-4.If each financial calculator has a per-unit product cost of $112,what was the cost of goods sold last year?
A)$10,864,000 
B)$10,839,360 
C)$11,005,120 
D)$10,888,640

Quizplus · Accepted Answer

Cost of goods sold = Total cost of goods manufactured - Finished goods inventory
Total cost of goods manufactured = 97,000 x $112 = $10,864,000
Finished goods inventory = (2,100 + 5,600 + 10,400 + 3,200) x $112 = $1,024,000
Cost of goods sold = $10,864,000 - $1,024,000 = $9,840,000
Therefore, the correct option is (D) $10,888,640.