Terrell Company manufactures computer stands.What is the beginning balance of Finished Goods Inventory if Cost of Goods Sold is $107,000; the ending balance of Finished Goods Inventory is $20,000; and Cost of Goods Manufactured is $50,000 less than Cost of Goods Sold?
A)$70,000
B)$77,000
C)$157,000
D)$127,000

Question

Quizplus · Accepted Answer

Beginning Finished Goods Inventory = Ending Finished Goods Inventory + Cost of Goods Sold - Cost of Goods Manufactured= $20,000 + $107,000 - ($107,000 - $50,000)= $20,000 + $107,000 - $57,000= $70,000

Terrell Company Manufactures Computer Stands