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, $640,000; cost of goods sold for the year, $2,560,000. The budgeted costs of goods manufactured for the year is?

Question

Quizplus · Accepted Answer

The cost of goods manufactured can be calculated as follows:

Cost of goods sold + ending finished goods inventory - beginning finished goods inventory = cost of goods manufactured

Substituting the given values, we get:

$2,560,000 + $640,000 - $765,000 = $2,435,000

Therefore, the budgeted cost of goods manufactured for the year is $2,435,000 which is option C.

The Budgeted Finished Goods Inventory and Cost of Goods Sold