Brown Company has the following information at the end of the current year: Cost of Goods Manufactured $65,000 Beginning Finished Goods Inventory 3,000 Ending Finished Goods Inventory 6,000 Manufacturing Overhead 9,000 What is the amount of cost of goods sold?

Question

Business

Lauryn Hatfield

12 August, 03:43

Brown Company has the following information at the end of the current year: Cost of Goods Manufactured $65,000 Beginning Finished Goods Inventory 3,000 Ending Finished Goods Inventory 6,000 Manufacturing Overhead 9,000 What is the amount of cost of goods sold?

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Answers (1)

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Cannon Mcclure · Answer 1

Cost of goods sold: 71,000.00

Explanation:

Cost of goods sold (COGS) is the sum of the direct costs attributable to the production of the goods sold in a company.

Formula:

COGS = Beginning Inventory + Purchases during the period - Ending Inventory

Purchases during the period includes Cost of Goods Manufactured and Manufacturing Overhead

In this particular case:

COGS = 3,000.00 + 65,000.00 + 9,000.00 - 6,000.00 = 71,000.00