Maximize Your Knowledge on Cost of Goods Manufactured!
Question 1:
The cost of goods manufactured during the month of June was:
A. $15,000
B. $26,000
C. $20,000
D. $5,000
Question 2:
The inventory remaining in finished goods at the end of April was:
A. $35,000
B. $25,000
C. $20,000
D. $16,000
Question 3:
The cost of goods sold during July was:
A. $55,000
B. $75,000
C. $96,000
D. $105,000
Answer:
a) B. $26,000
b) D. $16,000
c) B. $75,000
Let's calculate the cost of goods manufactured and the ending finished goods inventory for each scenario:
Question 1:
Beginning finished goods inventory = $16,000
Ending finished goods inventory = $10,000
Cost of goods sold = $20,000
Cost of goods manufactured = Beginning finished goods inventory + Cost of goods sold - Ending finished goods inventory
Cost of goods manufactured = $16,000 + $20,000 - $10,000 = $26,000
Answer: B. $26,000
Question 2:
Beginning finished goods inventory = $26,000
Cost of goods manufactured = $40,000
Cost of goods sold = $50,000
Beginning finished goods inventory = Cost of goods manufactured - Cost of goods sold
Ending finished goods inventory = $26,000 + $40,000 - $50,000 = $16,000
Answer: D. $16,000
Question 3:
Beginning finished goods inventory = $11,000
Ending finished goods inventory = $20,000
Cost of goods manufactured = $85,000
Beginning finished goods inventory + Cost of goods created - Ending finished goods inventory = Cost of goods sold
Cost of goods sold = $11,000 + $85,000 - $20,000 = $76,000
Answer: B. $75,000