The accounting records of Brownwood Company revealed the following information: $$\begin{array} { l r }
\text { Work-in-process inventory, Jan. 1 } & \$ 58,000 \
\text { Work-in-process inventory, Dec. } 31 & 49,000 \
\text { Finished-goods inventory, Jan. 1 } & 125,000 \
\text { Finished-goods inventory, Dec. } 31 & 158,000 \
\text { Cost of goods manufactured } & 754,000
\end{array}$$ Brownwood's cost of goods sold is:

Question

The accounting records of Brownwood Company revealed the following information: $$\begin{array} { l r } 
\text { Work-in-process inventory, Jan. 1 } & \$ 58,000 \
\text { Work-in-process inventory, Dec. } 31 & 49,000 \
\text { Finished-goods inventory, Jan. 1 } & 125,000 \
\text { Finished-goods inventory, Dec. } 31 & 158,000 \
\text { Cost of goods manufactured } & 754,000
\end{array}$$ Brownwood's cost of goods sold is:

Quizplus · Accepted Answer

Cost of goods sold is calculated as: Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory = $125,000 + $754,000 - $158,000 = $721,000.

The Accounting Records of Brownwood Company Revealed the Following Information