If a company had a beginning balance of $8,000 in Finished Goods Inventory, an ending balance of $5,000 in Finished Goods Inventory and cost of goods manufactured was $41,000 during the month, then the cost of goods sold for the month was $44,000.

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) can be calculated by adding the beginning balance of the Finished Goods Inventory to the cost of goods manufactured and then subtracting the ending balance of the Finished Goods Inventory. So, COGS = $8,000 + $41,000 - $5,000 = $44,000.

If a Company Had a Beginning Balance of $8,000 in Finished