The following information appears on the income statement of the Richer Company at the end of the year. $\begin{array}{lr}
\text { Beginning finished goods inventory } & \$ 160,000 \
\text { Ending finished goods inventory } & 144,000 \
\text { Sales } & 400,000 \
\text { Gross Profit on Sales } & 120,000
\end{array}$ Cost of Goods Manufactured was:

Question

Quizplus · Accepted Answer

The Cost of Goods Sold is calculated as Sales minus Gross Profit, which is $280,000. The Cost of Goods Manufactured is then calculated by adjusting the Cost of Goods Sold for the change in finished goods inventory: $144,000 (ending inventory) + $280,000 (Cost of Goods Sold) - $160,000 (beginning inventory) = $264,000.

The Following Information Appears on the Income Statement of the Richer