Calculate the cost of goods sold when beginning finished goods inventory equals $70,000,ending finished goods inventory $85,000,and cost of goods manufactured $600,000.

Question

Quizplus · Accepted Answer

Using the formula: Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory
Cost of Goods Sold = $70,000 + $600,000 - $85,000 = $585,000

Calculate the Cost of Goods Sold When Beginning Finished Goods