The following information was provided by Wilson Company for the year just ended:
$\begin{array}{|l|l|}
\hline \text { Beginning finished goods inventory } & \$ 150,750 \
\hline \text { Ending finished goods inventory } & \$ 140,475 \
\hline \text { Sales } & \$ 475,000 \
\hline \text { Gross margin } & \$ 150,000 \
\hline
\end{array}$
What was the cost of goods manufactured for the year?
A) $314,725.
B) $335,275.
C) $325,000.
D) $464,725.

Question

Quizplus · Accepted Answer

The cost of goods manufactured can be calculated as follows:Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory = Sales - Gross margin$150,750 + Cost of goods manufactured - $140,475 = $475,000 - $150,000Cost of goods manufactured = $325,000

The Following Information Was Provided by Wilson Company for the Year