Question

A manufacturing company reports the following items:
Finished goods inventory, beginning balance: $1,000
Finish goods inventory, ending balance: $1,200
Cost of goods manufactured, $5,000
Required:
a. The cost of goods sold is $ ___________.

Answer 1

Answer:

The cost of goods sold is $4,800

Explanation:

Cos of Goods sold is the cost incurred on production or purchase of units sold.

The Cost of Goods Sold can be calculated as follow

Cost of Goods Sold = Finished goods inventory, beginning balance + Cost of goods manufactured - Finish goods inventory, ending balance

Cost of Goods Sold = $1,000 + $5,000 - $1,200

Cost of Goods Sold = $4,800

Answer 2

Answer:

$4,800

Explanation:

Cost of goods sold can be described as the carrying amount of goods sold during a specific period of time. It can be calculated using the following equation:

Cost of goods sold = Beginning inventory balance + Cost of goods manufactured – Closing inventory balance

Substituting the values in the question into the equation above, we have:

Coat of goods sold = $1,000 + $5,000 - $1,200 = $4,800

Therefore, the cost of goods sold is $4,800.