A manufacturing company calculates cost of goods sold as follows:

Beginning FG inventory + cost of goods purchased - ending FG inventory.

Beginning FG inventory - cost of goods manufactured - ending FG inventory.

Beginning FG inventory + cost of goods manufactured - ending FG inventory.

Ending FG inventory - cost of goods manufactured + beginning FG inventory.

Question

Emilia Kidd

Business

9 September, 10:17

A manufacturing company calculates cost of goods sold as follows:

Beginning FG inventory + cost of goods purchased - ending FG inventory.

Beginning FG inventory - cost of goods manufactured - ending FG inventory.

Beginning FG inventory + cost of goods manufactured - ending FG inventory.

Ending FG inventory - cost of goods manufactured + beginning FG inventory.

+2

Answers (1)

Know the Answer?

Skyler Huffman · Answer 1

Beginning FG inventory + cost of goods manufactured - ending FG inventory.

Explanation:

The formula to compute the cost of good sold is shown below:

= Beginning balance of finished goods inventory + cost of goods manufactured - ending balance of finished goods inventory

The Beginning balance of finished goods inventory + cost of goods manufactured is called cost of goods that are available for sale

Hence, the third option is right and rest options are wrong