Michigan Motors has a beginning finished goods inventory of $81,600, cost of raw material purchases of $106,800, cost of goods manufactured of $176,400, and an ending finished goods inventory of $92,400. The cost of goods sold for this company is:

Question

Quizplus · Accepted Answer

The cost of goods sold is calculated as: Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory = $81,600 + $176,400 - $92,400 = $165,600.

Michigan Motors Has a Beginning Finished Goods Inventory of $81,600