Assume the following information for the Blue Knights Corporation for the year ended December 31, 2018: $$\begin{array} { l r }
\text { Sales } & \$ 2,250 \
\text { Cost of goods manufactured for the year } & 1,350 \
\text { Beginning finished goods inventory } & 450 \
\text { Ending finished goods inventory } & 495 \
\text { Selling and administrative expenses } & 300
\end{array}$$
What is the cost of goods sold for the year ended December 31, 2018?
A)$1,305
B)$1,605
C)$1,350
D)$1,650

Question

Assume the following information for the Blue Knights Corporation for the year ended December 31, 2018: $$\begin{array} { l r } 
\text { Sales } & \$ 2,250 \
\text { Cost of goods manufactured for the year } & 1,350 \
\text { Beginning finished goods inventory } & 450 \
\text { Ending finished goods inventory } & 495 \
\text { Selling and administrative expenses } & 300
\end{array}$$
What is the cost of goods sold for the year ended December 31, 2018?
A)$1,305
B)$1,605
C)$1,350
D)$1,650

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated as: Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory. So, COGS = $450 + $1,350 - $495 = $1,305.

Assume the Following Information for the Blue Knights Corporation for the Year