During December, Morgan Manufacturing transferred $64,000 to ending inventory.Morgan's inventories were as follows: $$\begin{array} { l c c }
& \text { Balance December 1 } & \text { Balance December 31 } \
\hline \text { Raw material } & \$ 15,000 & \$ 13,000 \
\text { Work-in-process } & \$ 23,000 & \$ 26,000 \
\text { Finished goods } & \$ 35,000 & \$ 37,000
\end{array}$$ What was the amount of cost of goods sold for December?

Question

During December, Morgan Manufacturing transferred $64,000 to ending inventory.Morgan's inventories were as follows: $$\begin{array} { l c c } 
& \text { Balance December 1 } & \text { Balance December 31 } \
\hline \text { Raw material } & \$ 15,000 & \$ 13,000 \
\text { Work-in-process } & \$ 23,000 & \$ 26,000 \
\text { Finished goods } & \$ 35,000 & \$ 37,000
\end{array}$$ What was the amount of cost of goods sold for December?

Quizplus · Accepted Answer

The cost of goods sold (COGS) can be calculated using the formula: COGS = Beginning Inventory + Purchases - Ending Inventory. Here, the total ending inventory is $76,000 ($13,000 + $26,000 + $37,000) and the beginning inventory is $73,000 ($15,000 + $23,000 + $35,000). The transferred amount to ending inventory is $64,000. Therefore, COGS = $73,000 + $64,000 - $76,000 = $62,000.

During December, Morgan Manufacturing Transferred $64,000 to Ending Inventory What Was the Amount of Cost of Goods Sold for Were