Question

Frederick Company's January 1, 2018 finished goods inventory was $94,000. The January 1, 2019 finished goods inventory is $81,000.  Cost of goods manufactured for the FY 2018 was $387,000. Use this information to determine the dollar amount of the FY 2018 cost of goods sold. (Round dollar values & enter as whole dollars only.)

Answer 1

Finished Goods Inventory as on Jan 1,2018	$                  94,000
Add: Cost of goods manufactured	$               3,87,000
Goods available for use	$               4,81,000
Less: Finished Goods Inventory as on Dec 31,2018	$                 -81,000
Cost of goods sold	$ 4,00,000