During its first year of operations, a company that incurred $1,900 in production costs reported cost of goods sold of $1,000 and selling costs of $300. Its ending finished goods inventory was $900.

True or False?

Question

Business

Precious Atkinson

19 June, 01:34

During its first year of operations, a company that incurred $1,900 in production costs reported cost of goods sold of $1,000 and selling costs of $300. Its ending finished goods inventory was $900.

True or False?

+3

Answers (1)

Know the Answer?

Patrick Whitehead · Answer 1

True

Explanation:

Considering the date provided in the question, Production costs - cost of goods sold = Ending Inventory.

So $ 1900 (production costs) - $ 1000 (cost of goods sold) = $ 900. Ending Inventory.

This would involve adjustments for changes in work in process balances if the information was provided.

The selling expenses are not part of manufacturing costs are thus not considered in the answer

During its first year of operations, a company that incurred $1,900 in production costs reported cost of goods sold of $1,000 and selling costs of $300. Its ending finished goods inventory was $900.True or False?

During its first year of operations, a company that incurred $1,900 in production costs reported cost of goods sold of $1,000 and selling costs of $300. Its ending finished goods inventory was $900.

True or False?