Cost of goods manufactured equals $88,000 for 2016.Finished goods inventory is $4,000 at the beginning of the year and $11,000 at the end of the year.Beginning and ending work in process for 2016 are $8,000 and $10,000 respectively.How much is cost of goods sold for the year?

Question

Quizplus · Accepted Answer

Cost of Goods Manufactured = Beginning WIP + Total Manufacturing Costs - Ending WIP
$88,000 = $8,000 + Total Manufacturing Costs - $10,000
Total Manufacturing Costs = $90,000

Cost of Goods Sold = Cost of Goods Manufactured + Beginning Finished Goods Inventory - Ending Finished Goods Inventory
Cost of Goods Sold = $88,000 + $4,000 - $11,000
Cost of Goods Sold = $81,000

Cost of Goods Manufactured Equals $88,000 for 2016