Given the following information, determine the cost of goods sold. $$\begin{array} { | l | r | }
\hline \text { Direct Labor Incurred } & \$ 63,000 \
\hline \text { Manufacturing Overhead Incurred } & 179,500 \
\hline \text { Direct Materials Used } & 150,000 \
\hline \text { Finished Goods Inventory, 1/1/2015 } & 197,500 \
\hline \text { Finished Goods Inventory, } 12 / 31 / 2015 & 221,000 \
\hline \text { Work-in-Process Inventory, } 1 / 1 / 2015 & 96,500 \
\hline \text { Work-in-Process Inventory, 12/31/2015 } & 109,000 \
\hline
\end{array}$$
A) $380,000
B) $1,016,500
C) $356,500
D) $414,000

Question

Given the following information, determine the cost of goods sold. $$\begin{array} { | l | r | } 
\hline \text { Direct Labor Incurred } & \$ 63,000 \
\hline \text { Manufacturing Overhead Incurred } & 179,500 \
\hline \text { Direct Materials Used } & 150,000 \
\hline \text { Finished Goods Inventory, 1/1/2015 } & 197,500 \
\hline \text { Finished Goods Inventory, } 12 / 31 / 2015 & 221,000 \
\hline \text { Work-in-Process Inventory, } 1 / 1 / 2015 & 96,500 \
\hline \text { Work-in-Process Inventory, 12/31/2015 } & 109,000 \
\hline
\end{array}$$
A) $380,000
B) $1,016,500
C) $356,500
D) $414,000

Quizplus · Accepted Answer

Cost of Goods Sold can be calculated using the formula:

Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory

Cost of Goods Manufactured can be calculated using the formula:

Beginning Work-in-Process Inventory + Manufacturing Costs - Ending Work-in-Process Inventory

Plugging in the given values:

Cost of Goods Manufactured = $96,500 + ($63,000 + $179,500 + $150,000) - $109,000
Cost of Goods Manufactured = $380,000

Cost of Goods Sold = $197,500 + $380,000 - $221,000
Cost of Goods Sold = $356,500

Therefore, the answer is C.

Given the Following Information, Determine the Cost of Goods Sold