For the year 2015,the gross profit of Alpha Company was $80,000;the cost of goods manufactured as $400,000;the beginning inventories of goods in process and finished goods were $28,000 and $50,000,respectively;and the ending inventories of goods in process and finished goods were $38,000 and $75,000,respectively.
Required:
What is the dollar amount of Alpha's sales for 2015?

To find Alphas' sales for 2015,first look at the inventory T-account. $$\begin{array}{l}\text{ Finished Goods Inventory }\\ \begin{array}{lcc}\begin{array}{l}\text{ Beginning balance }\\ \text{ Cost of goods }\end{array}& \$50,000& \\ \text{ Manufactured }& 400,000& \mathrm{X}\text{ Solve for: Cost of goods sold }\\ \text{ Ending balance }& \$75,000& \end{array}\end{array}$$
Since cost of goods manufactured is specified,there is no need to analyze work in process inventory.
Solve for cost of goods sold:$50,000 + $400,000 - X = $75,000
X = $375,000
After finding cost of goods sold,solve for sales using this figure and the gross profit amount given.Gross profit is the difference between sales revenue and cost of goods sold.So to find sales,add cost of goods sold to gross profit.Sales in 2015 would be:
$375,000 + $80,000 = $455,000