The following information appears on the income statement of the Richer Company at the end of th year:
$\begin{array}{lr}
\text { Beginning finished goods inventory } & \$ 152,000 \
\text { Ending finished goods inventory } & 137,000 \
\text { Sales } & 475,000 \
\text { Gross Profit on Sales } & 142,000
\end{array}$

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) can be calculated by subtracting the gross profit from sales: $475,000 - $142,000 = $333,000. The change in finished goods inventory is $152,000 - $137,000 = $15,000. Therefore, the cost of goods manufactured is $333,000 + $15,000 = $318,000.

The Following Information Appears on the Income Statement of the Richer