Swifty Corporation's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 Raw materials inventory $310000 $260000 Work in process inventory 300000 160000 Finished goods inventory 190000 150000 During 2017, $860000 of raw materials were purchased, direct labor costs amounted to $851700, and manufacturing overhead incurred was $752000. If Swifty Corporation's cost of goods manufactured for 2017 amounted to $2273700, its cost of goods sold for the year is

Question

Maritza Perkins

Business

8 June, 18:21

Swifty Corporation's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 Raw materials inventory $310000 $260000 Work in process inventory 300000 160000 Finished goods inventory 190000 150000 During 2017, $860000 of raw materials were purchased, direct labor costs amounted to $851700, and manufacturing overhead incurred was $752000. If Swifty Corporation's cost of goods manufactured for 2017 amounted to $2273700, its cost of goods sold for the year is

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Kaylynn Stanley · Answer 1

The cost of goods sold for the year is $223,3700

Explanation:

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

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

= $150,000 + $2,273,700 - $190,000

= $223,3700

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