Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2019. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?

Question

Quizplus · Accepted Answer

Cost of goods manufactured = beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory
Cost of goods manufactured = $10,000 + cost of goods sold - $20,000
Cost of goods manufactured = $10,000 + $50,000 - $20,000
Cost of goods manufactured = $60,000.

Therefore, the answer is C, as Kushman would report $60,000 for cost of goods manufactured.