The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year are as follows: January 1 finished goods, $765,000; December 31 finished goods, $540,000; and cost of goods sold for the year, $2,560,000. The budgeted costs of goods manufactured for the year is Group of answer choices $3,100,000 $2,335,000 $1,255,000 $2,785,000

Question

Marlee Horne

Business

20 November, 08:18

The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year are as follows: January 1 finished goods, $765,000; December 31 finished goods, $540,000; and cost of goods sold for the year, $2,560,000. The budgeted costs of goods manufactured for the year is Group of answer choices $3,100,000 $2,335,000 $1,255,000 $2,785,000

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Answers (1)

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Aubrie Livingston · Answer 1

Option B, $2,335,000 is correct answer.

Explanation:

The value of finished goods on 1st January = $765000

The value of finished goods on 31 December = $540000

The value of the cost of goods sold for the year = $2560000

Now we have to calculate the cost of goods that are manufactured. Below is the calculation for cost of goods manufactured.

Costs of goods manufactured = $540,000 + $2,560,000 - $765,000 = $2,335,000

So, option b, $2,335,000 is correct.