To follow is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the beginning finished goods inventory?

Question

To follow is selected financial data from Turtle Bay Manufacturing for the most recent year.  What is the beginning finished goods inventory?

Quizplus · Accepted Answer

The beginning finished goods inventory can be calculated by subtracting cost of goods sold and ending finished goods inventory from the cost of goods manufactured. From the given financial data: 
Cost of goods manufactured = $1,784,000 
Cost of goods sold = $1,764,000 
Ending finished goods inventory = $18,000 
Therefore, Beginning finished goods inventory = Cost of goods manufactured - Cost of goods sold - Ending finished goods inventory 
= $1,784,000 - $1,764,000 - $18,000 
= $2,000 
Hence, the best choice is B) $18,200.

To Follow Is Selected Financial Data from Turtle Bay Manufacturing