Worth Company reported the following year-end information: beginning work in process inventory $180000; cost of goods manufactured $866000; beginning finished goods inventory $252000; ending work in process inventory $220000; and ending finished goods inventory $264000. Worth Company's cost of goods sold for the year is
A) $854000.
B) $878000.
C) $826000.
D) $602000.

Question

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) is calculated as: Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory. Plugging in the numbers: $252,000 + $866,000 - $264,000 = $854,000.

Worth Company Reported the Following Year-End Information: Beginning Work in Process