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Listed below is selected data for Zodiac Company for the current year: Total man

ID: 2426079 • Letter: L

Question

Listed below is selected data for Zodiac Company for the current year:

Total manufacturing costs incurred during the year

$132,000

Work-in-process, beginning inventory

28,000

Work-in-process, ending inventory

18,000

Finished goods, beginning inventory

28,000

Finished goods, ending inventory

18,000


What is cost of goods sold for the current year?

Listed below is selected data for Zodiac Company for the current year:

Total manufacturing costs incurred during the year

$132,000

Work-in-process, beginning inventory

28,000

Work-in-process, ending inventory

18,000

Finished goods, beginning inventory

28,000

Finished goods, ending inventory

18,000


What is cost of goods sold for the current year?

Explanation / Answer

Beginning Balance of WIP inventory                                          $28,000

+ Total Manufacturing Cost                                                         $132,000

                                                                                                                ------------

                                                                                                                $160,000

(–) Ending Balance of WIP Inventory                              (18,000)

                                                                                    --------------

Cost of Goods Manufactured                                        $142,000

(+) Beginning Balance of FG Inventory                           $28,000

                                                                                    ----------------

                                                                                    $170,000

(–) Ending Balance of FG Inventory                                ($18,000)

                                                                                    -------------

Cost of Goods sold                                                      $152,000

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