In addition to cost of goods manufactured, which of the following is needed to compute the cost of goods sold for a manufacturer?
A)Beginning work in process inventory less ending work in process inventory
B)Ending work in process inventory less beginning work in process inventory
C)Ending finished goods
D)Beginning finished goods inventory less ending finished goods inventory

Question

Quizplus · Accepted Answer

To compute the cost of goods sold for a manufacturer, we need to subtract the cost of goods manufactured from the beginning finished goods inventory and add the ending finished goods inventory. Therefore, we need to know both the beginning and ending finished goods inventory, and the correct choice is D. Choices A and B are used to compute the cost of goods manufactured, while choice C is only useful for determining the ending inventory balance.

In Addition to Cost of Goods Manufactured, Which of the Following