Which of the following formulae determine cost of goods sold in a manufacturing sector company?
A)Cost of goods manufactured - Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold
B)Beginning work-in-process inventory + Cost of goods manufactured - Ending work-in-process inventory = Cost of goods sold
C)Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold
D)Beginning work-in-process inventory + Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold

Question

Quizplus · Accepted Answer

The correct formula for calculating the cost of goods sold in a manufacturing sector company is: Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory. This formula accounts for the total cost of goods that were ready for sale during the period, including those produced and those already in inventory at the beginning of the period, minus the goods still unsold at the end.

Which of the Following Formulae Determine Cost of Goods Sold