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.
A) $10,500
B) $60,000
C) $22,500
D) $7000

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.
A) $10,500
B) $60,000
C) $22,500
D) $7000

Quizplus · Accepted Answer

The formula for calculating ending finished goods inventory is Beginning Finished Goods Inventory + Cost of Goods Manufactured - Cost of Goods Sold. The information given in the question only provides the Cost of Goods Manufactured, which is $75,000. We do not have any information about the beginning finished goods inventory or the cost of goods sold. Therefore, we cannot calculate the ending finished goods inventory. None of the options provided are correct.

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