Assuming that the cost of goods manufactured is $3,460,000 compute the cost of goods sold using the following information. $\begin{array}{lll}
\text { Raw mate rials inventory, January 1 } & 30,000 \
\text { Raw materials inventory, December 31 } & 60,000 \
\text { Work in process, January 1 } & 27,000\
\text { Work in process, December } 31 & 18,000 \
\text { Finished goods, January 1 } & 60,000 \
\text { Finished goods, December } 31 & 48,000 \
\text { Raw materials purchases } & 1,800,000\
\text { Direct labor } & 890,000 \
\text { Factory utilities } & 225,000 \
\text { Indirect labor } & 75,000 \
\text { Factory depreciation } & 500,000 \
\text { Operating expenses } & 630,000
\end{array}$

Question

Quizplus · Accepted Answer

To calculate the cost of goods sold (COGS), we start with the cost of goods manufactured ($3,460,000) and adjust for the change in finished goods inventory. The beginning finished goods inventory is $60,000 and the ending finished goods inventory is $48,000, indicating a decrease of $12,000 in inventory. Therefore, COGS = Cost of Goods Manufactured + (Beginning Finished Goods Inventory - Ending Finished Goods Inventory) = $3,460,000 + ($60,000 - $48,000) = $3,460,000 + $12,000 = $3,472,000.

Assuming That the Cost of Goods Manufactured Is $3,460,000 Compute