Using the information below, calculate cost of goods sold for the period: $\begin{array}{lr}
\text { Sales revenues for the period }&\$1,304,000\
\
\text { Operating expenses for the period } & 239,000 \
\text { Finished Goods Inventory, January } 1 & 36,000 \
\text { Finished Goods Inventory, December } 31 & 41,000 \
\text { Cost of goods manufactured for the period } & 540,000
\end{array}$
A) $448,000.
B) $774,000.
C) $535,000.
D) $769,000.
E) $530,000.

Question

Quizplus · Accepted Answer

Cost of goods sold can be calculated by adding the cost of goods manufactured during the period (540,000) to the beginning finished goods inventory (36,000) and then subtracting the ending finished goods inventory (41,000):

Cost of Goods Sold = Cost of Goods Manufactured + Beginning FG Inventory – Ending FG Inventory
Cost of Goods Sold = 540,000 + 36,000 – 41,000
Cost of Goods Sold = $535,000.

Therefore, the best choice is (C).

Using the Information Below, Calculate Cost of Goods Sold for the Period