Question

Beginning finished goods inventory was $130,000. The cost of goods manufactured for the month was $760,000. The ending finished goods inventory was $150,000. What was the cost of goods sold for the month?a. $ 20,000b. $740,000c. $780,000d. $760,000

Answer 1

Answer:

b. $740,000

Explanation:

The computation of the cost of goods sold is calculated by applying the formula which is shown below:

= Beginning finished goods inventory + cost of goods manufactured or purchased - ending finished goods inventory

= $130,000 + $760,000 - $150,000

= $740,000

Here, the cost of goods manufactured means purchase of the inventory