Calculate the cost of goods sold when beginning finished goods inventory equals $87,000, ending finished goods inventory $75,000, and cost of goods manufactured $640,000.

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated as beginning finished goods inventory plus cost of goods manufactured minus ending finished goods inventory. So, COGS = $87,000 + $640,000 - $75,000 = $652,000.

Calculate the Cost of Goods Sold When Beginning Finished Goods