Use the following information for questions
Caltreck Manufacturing Inc.'s accounting records reflect the following inventories:
$$\begin{array} { l c c c }
& \underline{ \text { Dec. 31,2019 } }& \underline{\text { Dec. 31, 2020} } \
\text { Raw materials inventory } & \$ 100,000 & \$ 80,000 \
\text { Wark in process irventory } & 130,000 & 145,000 \
\text { Finished goods irventory } & 125,000 & 115,000
\end{array}$$ During 2020, Caltreck purchased $950,000 of raw materials, incurred direct labour costs of $125,000, and incurred manufacturing overhead totalling $160,000.
-Assume Caltreck Manufacturing's cost of goods manufactured for 2020 amounted to $1,200,000.How much would it report as cost of goods sold for the year?
A)$1,210,000
B)$1,250,000
C)$1,325,000
D)$1,190,000

Question

Use the following information for questions 
Caltreck Manufacturing Inc.'s accounting records reflect the following inventories:
 $$\begin{array} { l c c c } 
& \underline{ \text { Dec. 31,2019 } }&  \underline{\text { Dec. 31, 2020} } \
\text { Raw materials inventory } & \$ 100,000 & \$ 80,000 \
\text { Wark in process irventory } & 130,000 & 145,000 \
\text { Finished goods irventory } & 125,000 & 115,000
\end{array}$$ During 2020, Caltreck purchased $950,000 of raw materials, incurred direct labour costs of $125,000, and incurred manufacturing overhead totalling $160,000.
-Assume Caltreck Manufacturing's cost of goods manufactured for 2020 amounted to $1,200,000.How much would it report as cost of goods sold for the year?
A)$1,210,000
B)$1,250,000
C)$1,325,000
D)$1,190,000

Quizplus · Accepted Answer

To calculate the cost of goods sold (COGS) for the year, we use the formula: COGS = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory. Plugging in the numbers from the information provided: COGS = $125,000 (Beginning Finished Goods Inventory) + $1,200,000 (Cost of Goods Manufactured) - $115,000 (Ending Finished Goods Inventory) = $1,210,000.

Use the Following Information for Questions Caltreck Manufacturing Inc

Use the Following Information for Questions
Caltreck Manufacturing Inc