For work done during August,Printing Press Company incurred direct materials costs of $139,000 and conversion costs of $260,000.The company employs a just-in-time operating philosophy and backflush costing.At the end of August,it was determined that the Work in Process Inventory account had been assigned $1,080 of costs,and the ending balance of the Finished Goods Inventory account was $1,220.There were no beginning inventory balances.What was the ending balance of the Cost of Goods Sold account for August?

Question

Quizplus · Accepted Answer

The ending balance of the Cost of Goods Sold account is equal to the sum of the direct materials costs, conversion costs, and the change in the Work in Process Inventory account, minus the change in the Finished Goods Inventory account. In this case, the ending balance of the Cost of Goods Sold account is $396,700.

For Work Done During August,Printing Press Company Incurred Direct Materials