Richards Company The following information has been taken from the cost records of Richards Company for the past year: Raw material used in production $326 Total manufacturing costs charged to production during 686 the year (includes direct material, direct labor, and overhead equal to 50% of direct labor cost) Cost of goods available for sale 826 Selling and Administrative expenses 25
Inventories Begining Ending

Raw material 75 $85

Work in process 80 30
Finished goods 90 110
Refer to Richards Company.Cost of Goods Sold was

Question

Richards Company
The following information has been taken from the cost records of Richards Company for the past year:
Raw material used in production                                                $326
Total manufacturing costs charged to production during            686
the year (includes direct material, direct labor, and
overhead equal to 50% of direct labor cost)
Cost of goods available for sale                                                  826
Selling and Administrative expenses                                           25

Inventories	Begining	Ending
Raw material	75	$85
Work in process	80	30
Finished goods	90	110

Refer to Richards Company.Cost of Goods Sold was

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) can be calculated as Beginning Inventory + Purchases – Ending Inventory.

Beginning Inventory = $105 
Purchases = $641 
Ending Inventory = $30

COGS = $105 + $641 - $30 = $716

Therefore, the correct answer is choice B.

Richards Company The Following Information Has Been Taken from the Cost Records