Load King Manufacturing transferred $265,000 of costs from the work-in-process inventory account to the finished goods inventory account during the month. The company's inventory balances follow: $$\begin{array} { l l l }
& \text { Beginning } & \text { Ending } \
\text { Work-in-Process } & \$ 22,000 & \$ 25,400 \
\text { Finished Goods } & \$ 31,500 & \$ 29,200
\end{array}$$ How much is cost of goods sold for the month?

Question

Load King Manufacturing transferred $265,000 of costs from the work-in-process inventory account to the finished goods inventory account during the month. The company's inventory balances follow: $$\begin{array} { l l l } 
& \text { Beginning } & \text { Ending } \
\text { Work-in-Process } & \$ 22,000 & \$ 25,400 \
\text { Finished Goods } & \$ 31,500 & \$ 29,200
\end{array}$$ How much is cost of goods sold for the month?

Quizplus · Accepted Answer

The cost of goods sold is calculated as: Beginning Finished Goods + Transferred Costs - Ending Finished Goods = $31,500 + $265,000 - $29,200 = $267,300.

Load King Manufacturing Transferred $265,000 of Costs from the Work-In-Process