For 2020, Sparkman Company has cost of goods manufactured of $500,000, beginning finished goods inventory of $25,000, and ending finished goods inventory of $20,000.How much is cost of goods sold?
A)$505,000
B)$495,000
C)$545,000
D)$455,000

Question

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) is calculated as: Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory. Therefore, $25,000 + $500,000 - $20,000 = $505,000.

For 2020, Sparkman Company Has Cost of Goods Manufactured of $500,000