Skyway Company, a U.S.airplane manufacturer, reported a balance of $8,100 million in Inventory at the beginning of 2013 and $9,600 million at the end of 2013.Its income statement reported Cost of Products Sold of $45,400 million for 2013.Compute the cost of inventory either purchased or manufactured during 2013.(Skyway Company applies U.S.GAAP, and reports its results in millions of U.S.dollars.)
A)$49,500 million
B)$39,900 million
C)$46,900 million
D)$39,900 million.
E)none of the above

Question

Quizplus · Accepted Answer

The cost of inventory either purchased or manufactured during 2013 can be calculated by:
Cost of Products Sold = Beginning Inventory + Cost of Inventory Purchased or Manufactured during the year - Ending Inventory
$45,400 million = $8,100 million + Cost of Inventory Purchased or Manufactured during the year - $9,600 million
Cost of Inventory Purchased or Manufactured during the year = $46,900 million
Therefore, the best choice is (C) $46,900 million.