Mustang Corporation has accumulated the following accounting data for the month of April:

Finished goods inventory, April 1 $30,200

Finished goods inventory, April 30 24,600

Total cost of goods manufactured 114,500

The cost of goods sold for the year is:

a. $59,700

b. $120,100.

c. $108,900.

d. $144,700.

e. $169,300.

b. $120,100.

Explanation:

The movements in the Inventories account over a period is as a result of goods manufactured (which results in an increase in the account balance) and goods sold (which results in a decrease in inventory).

As such,

let the cost of goods sold be F

$30,200 + $114,500 - F = 24,600

$30,200 + $114,500 - 24,600 = F

F = $120,100

The cost of goods sold is $120,100.