The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year 2012 are as follows: January 1 finished goods, $765,000; December 31 finished goods, $540,000; cost of goods sold for the year, $2,560,000. The budgeted costs of goods manufactured for the year is?

Question

Quizplus · Accepted Answer

To find the budgeted costs of goods manufactured for the year, we need to use the formula:

Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory = Cost of goods sold

Substituting the given values, we get:

$765,000 + Cost of goods manufactured - $540,000 = $2,560,000

Simplifying the equation, we get:

Cost of goods manufactured = $2,335,000 (Option B)

The Budgeted Finished Goods Inventory and Cost of Goods Sold