Using $3040000 as the cost of goods manufactured, compute the cost of goods sold using the following information

Raw materials inventory, January 1 $ 20000

Raw materials inventory, December 31 40000

Work in process, January 1 18000

Work in process, December 31 12000

Finished goods, January 1 40000

Finished goods, December 31 32000

Raw materials purchases 1700000

Direct labor 760000

Factory utilities 150000

Indirect labor 50000

Factory depreciation 400000

Operating expenses 420000

a) $3046000.

b) $3048000.

c) $3032000.

d) $3008000.

Question

Yoselin Pope

Business

11 September, 16:43

Using $3040000 as the cost of goods manufactured, compute the cost of goods sold using the following information

Raw materials inventory, January 1 $ 20000

Raw materials inventory, December 31 40000

Work in process, January 1 18000

Work in process, December 31 12000

Finished goods, January 1 40000

Finished goods, December 31 32000

Raw materials purchases 1700000

Direct labor 760000

Factory utilities 150000

Indirect labor 50000

Factory depreciation 400000

Operating expenses 420000

a) $3046000.

b) $3048000.

c) $3032000.

d) $3008000.

+1

Answers (1)

Know the Answer?

Jon Molina · Answer 1

b) $3,048,000

The cost of goods sold is $3,048,000

Explanation:

Particulars Amount

Finished goods inventory (Jan 1) 40,000

Add: Cost of goods manufactured 3,040,000

Cost of goods available for sale 3,080,000

Less: Finished goods inventory (Dec 31) 32,000

Cost of goods sold 3,048,000