Craft Manufacturing Company's accounting records reflect the following inventories:
During 2019, $500,000 of raw materials were purchased, direct labour costs amounted to $600,000, and manufacturing overhead incurred was $480,000.
-If Craft Manufacturing Company's cost of goods manufactured for 2019 amounted to $1,390,000, its cost of sales for the year is:

Question

Craft Manufacturing Company's accounting records reflect the following inventories:
  During 2019, $500,000 of raw materials were purchased, direct labour costs amounted to $600,000, and manufacturing overhead incurred was $480,000.
-If Craft Manufacturing Company's cost of goods manufactured for 2019 amounted to $1,390,000, its cost of sales for the year is:

Quizplus · Accepted Answer

Cost of sales: $150,000 + $1,390,000 - $190,000 = $1,350,000.

Craft Manufacturing Company's Accounting Records Reflect the Following Inventories