Assume the following information for Knight Ltd. for the year ended December 31, 2011: $\begin{array}{lr}
\text { Sales } & £ 2,250 \
\text { Cost of goods manufactured for the year } & 1,350 \
\text { Beginning finished goods inventory } & 450 \
\text { Ending finished goods inventory } & 495 \
\text { Selling and administrative expenses } & 300
\end{array}$ What is the cost of goods sold for the year ended December 31, 2011?
A)£1,305
B)£1,605
C)£1,350
D)£1,650

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated as the beginning finished goods inventory plus the cost of goods manufactured minus the ending finished goods inventory. Thus, COGS = £450 + £1,350 - £495 = £1,305.

Assume the Following Information for Knight Ltd What Is the Cost of Goods Sold for the Year