Kushman Combines Inc. has $20000 of ending finished goods inventory as of December 31 2013. If beginning finished goods inventory was $10000 and cost of goods sold was $50000 how much would Kushman report for cost of goods manufactured?

Question

Quizplus · Accepted Answer

The cost of goods manufactured can be calculated using the following formula: 
Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory = Cost of Goods Sold 
Substituting the given values: 
$10000 + Cost of Goods Manufactured - $20000 = $50000 
Solving for Cost of Goods Manufactured: 
Cost of Goods Manufactured = $60000