Question

Kushman Industries has $40,000 of ending finished goods inventory. If beginning finished goods inventory was $20,000 and cost of goods sold was $80,000, how much would Kushman report for cost of goods manufactured

Answer 1

$100,000= cost of goods manufactured

Step-by-step explanation:

Giving the following information:

Kushman Industries has $40,000 of ending finished goods inventory.

Beginning finished goods inventory was $20,000

Cost of goods sold was $80,000

To calculate the cost of goods manufactured, we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

80,000 = 20,000 + cost of goods manufactured - 40,000

$100,000= cost of goods manufactured