Asked by Nomzamo Lubisi on May 11, 2024
Verified
The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was
A) $233,000
B) $225,600
C) $288,800
D) $240,400
Cost of Goods Manufactured
The total production cost of goods completed during a specific period, including costs of materials, labor, and overhead.
Finished Goods Inventory
Represents the value of a company's completed products ready for sale but not yet sold at the end of an accounting period.
- Determine the manufacturing cost and the selling cost of goods from the specified data.
Verified Answer
KT
Kelsang TseringMay 17, 2024
Final Answer :
B
Explanation :
Cost of goods manufactured = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
C.O.G.M. = $31,600 + C.O.G.M. - $24,200
C.O.G.M. = $233,000 - $7,400
C.O.G.M. = $225,600
C.O.G.M. = $31,600 + C.O.G.M. - $24,200
C.O.G.M. = $233,000 - $7,400
C.O.G.M. = $225,600
Learning Objectives
- Determine the manufacturing cost and the selling cost of goods from the specified data.
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