Super Tread Inc. is a large manufacturer of auto tires. Super Tread has provided the following information: $$\begin{array} { | l | r | }
\hline \text { Sales Revenue } & \$ 55,000 \
\hline \text { Beginning Finished Goods Inventory } & 15,500 \
\hline \text { Cost of Goods Sold } & 37,500 \
\hline \text { Cost of Goods Manufactured } & 44,500 \
\hline
\end{array}$$ Calculate the amount of ending Finished Goods Inventory reported on Super Tread's balance sheet.

Question

Super Tread Inc. is a large manufacturer of auto tires. Super Tread has provided the following information: $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 55,000 \
\hline \text { Beginning Finished Goods Inventory } & 15,500 \
\hline \text { Cost of Goods Sold } & 37,500 \
\hline \text { Cost of Goods Manufactured } & 44,500 \
\hline
\end{array}$$ Calculate the amount of ending Finished Goods Inventory reported on Super Tread's balance sheet.

Quizplus · Accepted Answer

According to the information provided, Super Tread's cost of goods manufactured is $425,000 and its cost of goods sold is $392,500. Using the formula for calculating ending finished goods inventory:
Ending Finished Goods Inventory = Cost of Goods Manufactured - Cost of Goods Sold
Ending Finished Goods Inventory = $425,000 - $392,500 = $32,500
Therefore, the amount of ending finished goods inventory reported on Super Tread's balance sheet is $22,500 after deducting the $10,000 finished goods inventory held by customers, which is included as an asset in Super Tread's balance sheet. The correct answer is C.

Super Tread Inc Calculate the Amount of Ending Finished Goods Inventory Reported on Super