Juliet Corporation has accumulated the following accounting data for the year:
$\begin{array}{llr}
\text { Finished goods inventory, January 1} &\$3,200\
\text { Finished goods inventory, December 31 } &4,000\
\text {Total cost of goods sold } &4,200
\end{array}$

The cost of goods manufactured for the year is:
A) $200
B) $1,000
C) $5,000
D) $6,400
E) $8,200

Question

Juliet Corporation has accumulated the following accounting data for the year:
$\begin{array}{llr}
  \text { Finished goods inventory, January 1} &\$3,200\
 \text { Finished goods inventory, December 31 } &4,000\
 \text {Total cost of goods sold  } &4,200
\end{array}$

The cost of goods manufactured for the year is:
A) $200
B) $1,000
C) $5,000
D) $6,400
E) $8,200

Quizplus · Accepted Answer

The cost of goods manufactured is calculated as: Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory = Cost of Goods Sold. Solving for Cost of Goods Manufactured: $3,200 + Cost of Goods Manufactured - $4,000 = $4,200, which gives Cost of Goods Manufactured = $5,000.

Juliet Corporation Has Accumulated the Following Accounting Data for the Year