Edmiston Company reported the following year-end information: beginning work in process inventory $80000; cost of goods manufactured $750000; beginning finished goods inventory $50000; ending work in process inventory $70000; and ending finished goods inventory $40000. How much is Edmiston's cost of goods sold for the year?
A) $750000
B) $760000
C) $740000
D) $770000

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: $50,000 + $750,000 - $40,000 = $760,000.

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