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Manders Corporation has $20,000 of ending finished goods inventory at December 31. If beginning finished goods inventory was $15,000 and cost of goods sold was $40,000, how much would Manders Corporation report as cost of goods manufactured?

Respuesta :

Samawati

Answer:

$45,000

Explanation:

The cost of goods sold is calculated by the formula

COGS = opening inventory + purchases - closing stock. For a manufacturing firm, purchases are replaced by manufactured goods.

in this case

Opening inventory = $15,000

manufactured goods= XXX

ending inventory = $20,000

COGS =$40,000

Finding the cost of manufactured goods

$40,000 = 15,000 + X -20,000

$40,000 = 15,000-20,000 +X

$40,000= - 5,000 + X

X= 40,000 +5000

X= 45,000

cost of goods manufactured =$45,000

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