Benson Inc.'s accounting records reflect the following inventories: $$\begin{array} { l c c c }
& \text { Dec. } 31,2016 & \text { Dec. 31, 2017 } \
\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \
\text { Work in process inventory } & 104,000 & 116,000 \
\text { Finished goods inventory } & 100,000 & 92,000
\end{array}$$ During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. Assume Benson's cost of goods manufactured for 2017 amounted to $1,660,000.How much would it report as cost of goods sold for the year?
A)$1,668,000
B)$1,568,000
C)$1,760,000
D)$1,652,000

Question

Benson Inc.'s accounting records reflect the following inventories: $$\begin{array} { l c c c } 
& \text { Dec. } 31,2016 &  \text { Dec. 31, 2017 } \
\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \
\text { Work in process inventory } & 104,000 & 116,000 \
\text { Finished goods inventory } & 100,000 & 92,000
\end{array}$$ During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. Assume Benson's cost of goods manufactured for 2017 amounted to $1,660,000.How much would it report as cost of goods sold for the year?
A)$1,668,000
B)$1,568,000
C)$1,760,000
D)$1,652,000

Quizplus · Accepted Answer

The cost of goods sold is calculated as: Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory = $100,000 + $1,660,000 - $92,000 = $1,668,000.

Benson Inc During 2017, Benson Purchased $1,450,000 of Raw Materials, Incurred Direct