In: Accounting
M2-19 Calculating Missing Amounts and Cost of Goods Sold [LO 2-6]
For each of the following independent cases A–D, compute the missing values: (Enter all amounts as positive values.)
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Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory = Cost of Goods Sold
The correct answer is:
Case | Cost of Goods Manufactured | Beginning Finished Goods Inventory | Ending Finished Goods Inventory | Cost of Goods Sold |
A | 3,180 | 560 | 270 | 3,470 |
B | 4,190 | 1,770 | 1,400 | 4,560 |
C | 4,255 | 890 | 680 | 4,465 |
D | 11,000 | 2,360 | 3,710 | 9,650 |
Note :
A : Cost of Goods Sold = $ 560 + $ 3,180 - $ 270
B : Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory = Cost of Goods Sold
or Cost of Goods Sold - Cost of Goods Manufactured + Ending Finished Goods Inventory = Beginning Finished Goods Inventory
or Beginning Finished Goods Inventory = $ 4,560- $ 4,190 + $ 1,400
C : Cost of Goods Manufactured = $ 4,465+ $ 680 - $ 890
D :Ending Finished Goods Inventory = $ 11,000 + $ 2,360 - $ 9,650