Tucker Company's work in process account decreased by $1,000,while its Finished Goods Inventory account increased by $500.Assuming total manufacturing costs were $5,000,what was the company's cost of goods sold amount?
A) $3,500
B) $4,500
C) $4,000
D) $5,500

Question

Quizplus · Accepted Answer

If the inventory balances increased,the ending balances are more than the beginning balances and vice versa.
Cost of goods manufactured = Beginning work in process + Total manufacturing costs- Ending work in process
Cost of goods manufactured = Beginning work in process + $5,000 - (Ending work in process - $1,000)
Cost of goods manufactured = $5,000 + $1,000 = $6,000
Cost of goods sold = Beginning finished goods + Cost of goods manufactured - Ending finished goods
Cost of goods sold = Beginning finished goods + $6,000 - (Beginning finished goods + $500)
Cost of goods sold = $6,000 - $500 = $5,500

Tucker Company's Work in Process Account Decreased by $1,000,while Its