Mustang Corporation has accumulated the following accounting data for the month of April: Finished goods inventory, January 1 ………. $3,200
Finished goods inventory, December 31 …... 4,000
Total cost of goods sold ……………………. 14,200
The cost of goods sold for the year is:

Question

Quizplus · Accepted Answer

The formula to calculate cost of goods sold is: Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory = Cost of Goods Sold. We are given the beginning finished goods inventory as $3,200, and the ending finished goods inventory as $4,000. Therefore, we can plug in the numbers to get: $3,200 + Cost of Goods Manufactured - $4,000 = $14,200. Solving for Cost of Goods Manufactured, we get $15,000. Thus, the cost of goods sold for the year is $15,000.

Mustang Corporation Has Accumulated the Following Accounting Data for the Month