Question

Youngstown Rubber reports the following data for its first year of operation.

Direct materials used= $711,000

Cost of goods manufactured= $680,600

Finished goods​ inventory, ending= $191,000

Manufacturing Overhead= 100,000

Finished goods​ inventory, beginning = 0

Work in process​ inventory, beginning = 0

Work in process​ inventory, ending = 130,400

What is the cost of goods​ sold? A. $1,491,600 B. $459,200 C. $489,600 D. $680,600

Answer 1

Answer: The correct answer is "C. $489,600".

Explanation: The problem can be solved with a simple calculation:

The cost of goods sold is obtained by calculating: The Cost of goods manufactured - Finished goods inventory, ending.

Therefore the calculation would be:

$ 680600 - $ 191000 = $489600.