Morris Company manufacturers computer stands. What is the beginning balance of Finished Goods Inventory if Cost of Goods Sold is $107,000; the ending balance of Finished Goods Inventory is $20,000; and Cost of Goods Manufactured is $50,000 less than Cost of Goods Sold?
A) $70,000
B) $77,000
C) $157,000
D) $127,000

Question

Quizplus · Accepted Answer

The beginning balance of Finished Goods Inventory is $70,000. This is calculated by adding the ending balance of Finished Goods Inventory ($20,000) to the Cost of Goods Sold ($107,000) and then subtracting the Cost of Goods Manufactured ($50,000 less than Cost of Goods Sold).

Morris Company Manufacturers Computer Stands