Question

During FY 2018, Towson Manufacturing had a beginning finished goods inventory of $23,000 & ending finished goods inventory of $18,500. Beginning work-in-process was $19,000 and ending work-in-process was 13,500. Factory overhead was $22,500. The total manufacturing costs amounted to $212,000. Use this information to determine the FY 2018 Cost of Goods Sold. (Round enter as whole dollars only.)

Answer 1

Solution :

Cost of goods sold will be $222,000

Working :

A.	total manufacturing cost	$212,000
B	opening WIP inventory	$19,000
C	( A+ B )	$231,000
D	closing WIP inventory	$13,500
E	Cost of goods manufactured ( C- D )	$217,500
F	opening finished goods inventory	$23,000
G	( E+ F)	$240,500
H	closing finished goods inventory	$18,500
I	cost of goods sold ( G - H )	$ 222,000

Factory overheads will be included as they are already included in total manufacturing cost .~~~please upvote.