The following information was provided by Grand Company for the year just ended: $$\begin{array} { | l | r | }
\hline \text { Beginning finished goods inventory } & \$ 130,425 \
\hline \text { Ending finished goods inventory } & \$ 125,770 \
\hline \text { Sales } & \$ 500,000 \
\hline \text { Gross margin } & \$ 100,000 \
\hline
\end{array}$$ The cost of goods manufactured for the year was:
A)$395,345.
B)$404,655.
C)$104,655.
D)$95,345.

Question

The following information was provided by Grand Company for the year just ended: $$\begin{array} { | l | r | } 
\hline \text { Beginning finished goods inventory } & \$ 130,425 \
\hline \text { Ending finished goods inventory } & \$ 125,770 \
\hline \text { Sales } & \$ 500,000 \
\hline \text { Gross margin } & \$ 100,000 \
\hline
\end{array}$$ The cost of goods manufactured for the year was:
A)$395,345.
B)$404,655.
C)$104,655.
D)$95,345.

Quizplus · Accepted Answer

Cost of goods manufactured = Beginning finished goods inventory + Cost of goods sold - Ending finished goods inventoryCost of goods sold = Sales - Gross marginCost of goods manufactured = $130,425 + ($500,000 - $100,000) - $125,770 = $395,345

The Following Information Was Provided by Grand Company for the Year