Barrister and Company began July with a finished goods inventory of $10 000. The cost of goods manufactured during the month was $85 000 and the ending finished goods inventory was $20 000.
The cost of goods sold during July was:
A) $55 000.
B) $75 000.
C) $95 000.
D) $105 000.

Question

Quizplus · Accepted Answer

To calculate the cost of goods sold, we need to use the formula: Beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory = Cost of goods sold
Plugging in the given values, we get: $10 000 + $85 000 - $20 000 = $75 000. Therefore, the answer is B.

Barrister and Company Began July with a Finished Goods Inventory