Johnson Manufacturing has the following selected information available for the year:
$\begin{array}{lr}
\text { Direct material purchased } &\$40000\
\text { Direct material used } &45000\
\text { Direct labour incurred } &75000\
\text {Manufacturing overhead incurred } &50000\
\text { Cost of goods manufactured} &100000\
\end{array}$

In addition,the cost of the finished goods inventory increased by $10 000 from the beginning to the end of the year.Cost of goods sold for the year is:

Question

Johnson Manufacturing has the following selected information available for the year:
$\begin{array}{lr}
  \text { Direct material purchased } &\$40000\
 \text { Direct material used } &45000\
 \text { Direct labour incurred } &75000\
 \text {Manufacturing overhead incurred  } &50000\
 \text {  Cost of goods manufactured} &100000\
\end{array}$

In addition,the cost of the finished goods inventory increased by $10 000 from the beginning to the end of the year.Cost of goods sold for the year is:

Quizplus · Accepted Answer

The cost of goods manufactured is $100,000. Since the finished goods inventory increased by $10,000, it means $10,000 worth of goods were not sold. Therefore, the cost of goods sold is $100,000 - $10,000 = $90,000.

Johnson Manufacturing Has the Following Selected Information Available for the Year