Question

In: Accounting

M2-19 Calculating Missing Amounts and Cost of Goods Sold [LO 2-6] For each of the following...

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.)

Case Cost of Goods Manufactured Beginning Finished Goods Inventory Ending Finished Goods Inventory Cost of Goods Sold
A $3,180 $560 $270
B 4,190 1,400 4,560
C 890 680 4,465
D 11,000 2,360 9,650

Solutions

Expert Solution

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


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