Lots of Stuff Company reports the following data for its first year of operation. Cost of goods manufactured $455 comma 700455,700 Work in process inventory, beginning 0 Work in process inventory, ending 140 comma 600140,600 Direct materials used 110 comma 000110,000 Direct Labor 139 comma 000139,000 Manufacturing overhead 185 comma 800185,800 Finished goods inventory, beginning 0 Finished goods inventory, ending 90 comma 40090,400 What is the cost of goods sold?

Question

Lucia Durham

Business

30 December, 15:04

Lots of Stuff Company reports the following data for its first year of operation. Cost of goods manufactured $455 comma 700455,700 Work in process inventory, beginning 0 Work in process inventory, ending 140 comma 600140,600 Direct materials used 110 comma 000110,000 Direct Labor 139 comma 000139,000 Manufacturing overhead 185 comma 800185,800 Finished goods inventory, beginning 0 Finished goods inventory, ending 90 comma 40090,400 What is the cost of goods sold?

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Answers (1)

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Mollie Hutchinson · Answer 1

The cost of goods sold is $365,300

Explanation:

The computation of the cost of goods sold is calculated by applying the formula which is shown below:

= Beginning finished goods inventory + cost of goods manufactured or purchased - ending finished goods inventory

= $0 + $455,700 - $90,400

= $365,300

Here, the cost of goods manufactured means purchase of the inventory

The other items which are displayed in the question are irrelevant. Hence, ignored it.