Answer the following questions using the information below:
$\begin{array}{lr}
\text { Beginning finished goods, } 1 / 1 / 2018 & \$ 80000 \
\text { Ending firished goods, } 12 / 31 / 2018 & 67000 \
\text { Cost of goods sold } & 270000 \
\text { Sales revenue } & 500000 \
\text { Operating expenses } & 145000
\end{array}$
-What is cost of goods manufactured for 2018?
A)$283 000
B)$257 000
C)$230 000
D)$355 000

Question

Answer the following questions using the information below:
 $\begin{array}{lr}
\text { Beginning finished goods, } 1 / 1 / 2018 & \$ 80000 \
\text { Ending firished goods, } 12 / 31 / 2018 & 67000 \
\text { Cost of goods sold } & 270000 \
\text { Sales revenue } & 500000 \
\text { Operating expenses } & 145000
\end{array}$
-What is cost of goods manufactured for 2018?
A)$283 000
B)$257 000
C)$230 000
D)$355 000

Quizplus · Accepted Answer

The cost of goods manufactured can be calculated using the formula: Beginning Finished Goods + Cost of Goods Sold - Ending Finished Goods. Plugging in the numbers: $80,000 + $270,000 - $67,000 = $283,000. However, the correct calculation for finding the cost of goods manufactured should actually account for the adjustment of ending finished goods inventory to determine the total cost of goods available for sale, which then, when subtracted from the cost of goods sold, gives us the ending inventory. The correct formula should be: Cost of Goods Manufactured = Cost of Goods Sold + Ending Finished Goods - Beginning Finished Goods. Thus, $270,000 + $67,000 - $80,000 = $257,000.

Answer the Following Questions Using the Information Below -What Is Cost of Goods Manufactured for 2018? A)$283 000

Answer the Following Questions Using the Information Below -What Is Cost of Goods Manufactured for 2018?
A)$283 000