Benson Inc.'s accounting records reflect the following inventories: $\begin{array}{lcc}
& \text { Dec. 31,2021 } & \text { Dec. 31,2022 } \
\hline \text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \
\text { Work in process inventory } & 104,000 & 116,000 \
\text { Finished qoods inventory } & 100,000 & 92,000
\end{array}$ During 2022 Benson purchased $1450000 of raw materials incurred direct labor costs of $250000 and incurred manufacturing overhead totaling $160000. Assume Benson's cost of goods manufactured for 2022 amounted to $1660000.How much would it report as cost of goods sold for the year?

Question

Benson Inc.'s accounting records reflect the following inventories: $\begin{array}{lcc} 
& \text { Dec. 31,2021 } & \text { Dec. 31,2022 } \
\hline  \text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \
\text { Work in process inventory } & 104,000 & 116,000 \
\text { Finished qoods inventory } & 100,000 & 92,000
\end{array}$ During 2022 Benson purchased $1450000 of raw materials incurred direct labor costs of $250000 and incurred manufacturing overhead totaling $160000. Assume Benson's cost of goods manufactured for 2022 amounted to $1660000.How much would it report as cost of goods sold for the year?

Quizplus · Accepted Answer

The cost of goods sold is calculated as: Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory = $100,000 + $1,660,000 - $92,000 = $1,668,000.

Benson Inc During 2022 Benson Purchased $1450000 of Raw Materials Incurred Direct