The following information pertains to Tom's Country Wood Shop: What is the cost of goods manufactured for 2018?

Question

The following information pertains to Tom's Country Wood Shop:  What is the cost of goods manufactured for 2018?

Quizplus · Accepted Answer

The cost of goods manufactured can be found in the income statement: Cost of goods sold (COGS) + ending finished goods inventory - beginning finished goods inventory = Cost of goods manufactured. From the income statement provided, we have: COGS = $108,000, ending finished goods inventory = $28,000, beginning finished goods inventory = $86,500. Therefore, Cost of goods manufactured = $108,000 + $28,000 - $86,500 = $50,500.

The Following Information Pertains to Tom's Country Wood Shop