M2-19 Calculating Missing Amounts and Cost of Goods Sold [LO 2-6]

Question:

M2-19 Calculating Missing Amounts and Cost of Goods Sold [LO 2-6]

For each of the following independent cases A–D, compute the missing values: (Enter all amounts as positive values.)

Case	Cost of Goods Manufactured	Beginning Finished Goods Inventory	Ending Finished Goods Inventory	Cost of Goods Sold
A	$3,180	$560	$270
B	4,190		1,400	4,560
C		890	680	4,465
D	11,000	2,360		9,650

Answer:

Beginning Finished Goods Inventory + Cost of Goods Manufactured – Ending  Finished Goods Inventory = Cost of Goods Sold

The correct answer is:

Case	Cost of Goods Manufactured	Beginning Finished Goods Inventory	Ending Finished Goods Inventory	Cost of Goods Sold
A	3,180	560	270	3,470
B	4,190	1,770	1,400	4,560
C	4,255	890	680	4,465
D	11,000	2,360	3,710	9,650

Note :

A : Cost of Goods Sold = $ 560 + $ 3,180 – $ 270

B: Beginning Finished Goods Inventory + Cost of Goods Manufactured – Ending  Finished Goods Inventory = Cost of Goods Sold

or Cost of Goods Sold – Cost of Goods Manufactured + Ending  Finished Goods Inventory = Beginning Finished Goods Inventory

or Beginning Finished Goods Inventory = $ 4,560- $ 4,190 + $ 1,400

C :  Cost of Goods Manufactured = $ 4,465+ $ 680 – $ 890

D :Ending  Finished Goods Inventory = $ 11,000 + $ 2,360 – $ 9,650