During a reporting period, a computer manufacturing company used raw materials of $50,000, had direct labor costs of $75,000, and factory overhead of $30,000. other expenses were for advertising of $5,000, staff salaries of $10,000, and bad debt of $3,000. the company did not have a beginning balance in any inventory account. all goods manufactured during the period were sold during the period. what amount was the company's cost of goods sold during the reporting period

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Business

Maximus

24 March, 17:26

During a reporting period, a computer manufacturing company used raw materials of $50,000, had direct labor costs of $75,000, and factory overhead of $30,000. other expenses were for advertising of $5,000, staff salaries of $10,000, and bad debt of $3,000. the company did not have a beginning balance in any inventory account. all goods manufactured during the period were sold during the period. what amount was the company's cost of goods sold during the reporting period

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Davion Doyle · Answer 1

To calculate the cost of goods sold we use the following formula:

beginning inventory + the cost of goods purchased or manufactured = cost of goods available ending inventory.

Since there was no beginning balance in inventory account and all goods were sold we can assume that cost of goods = total costs for the period. Adding up all costs for the period comes to $173,000.