Which one of the following is the correct calculation of cost of goods sold for a manufacturing company?
A)beginning FG inventory - cost of goods manufactured - ending FG inventory
B)ending FG inventory - cost of goods manufactured + beginning FG inventory
C)beginning FG inventory + cost of goods purchased - ending FG inventory
D)beginning FG inventory + cost of goods manufactured - ending FG inventory

Question

Quizplus · Accepted Answer

Cost of goods sold for a manufacturing company is calculated by adding the beginning finished goods inventory to the cost of goods manufactured and subtracting the ending finished goods inventory. Therefore, the correct formula is beginning FG inventory + cost of goods manufactured - ending FG inventory, which is option D.

Which One of the Following Is the Correct Calculation of Cost