The beginning finished goods inventory of Ronald Co.was $480,125.Goods completed during the year cost $963,250.The ending finished goods inventory was dangerously low,having been reduced to $135,850.The cost of goods sold for the year for Ronald Co.was

Question

Quizplus · Accepted Answer

To calculate the cost of goods sold for the year, we need to use the following formula:

Cost of goods sold = Beginning finished goods inventory + Cost of goods completed during the year - Ending finished goods inventory

Plugging in the given values, we get:

Cost of goods sold = $480,125 + $963,250 - $135,850
Cost of goods sold = $1,307,525

Therefore, the correct answer is B.

The Beginning Finished Goods Inventory of Ronald Co