Dolan Company's accounting records reflect the following inventories: $$\begin{array} { l c c }
& \text { Dec. 31, 2017 } & \text { Dec. 31, 2016 } \
\text { Raw materials inventory } & \$ 310,000 & \$ 260,000 \
\text { Work in process inventory } & 300,000 & 160,000 \
\text { Finished goods inventory } & 190,000 & 150,000
\end{array}$$ During 2017, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000. If Dolan Company's cost of goods manufactured for 2017 amounted to $1,890,000, its cost of goods sold for the year is
A)$2,000,000.
B)$1,750,000.
C)$1,850,000.
D)$1,930,000.

Question

Dolan Company's accounting records reflect the following inventories: $$\begin{array} { l c c } 
& \text { Dec. 31, 2017 } & \text { Dec. 31, 2016 } \
\text { Raw materials inventory } & \$ 310,000 & \$ 260,000 \
\text { Work in process inventory } & 300,000 & 160,000 \
\text { Finished goods inventory } & 190,000 & 150,000
\end{array}$$ During 2017, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000. If Dolan Company's cost of goods manufactured for 2017 amounted to $1,890,000, its cost of goods sold for the year is
A)$2,000,000.
B)$1,750,000.
C)$1,850,000.
D)$1,930,000.

Quizplus · Accepted Answer

Cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory= $150,000 + $1,890,000 - $190,000= $1,850,000

Dolan Company's Accounting Records Reflect the Following Inventories During 2017, $800,000 of Raw Materials Were Purchased, Direct Labor