The following inventory balances relate to Lequin Manufacturing Corporation at the beginning and end of the year: Beginning Ending Raw materials $14,000 $19,000 Work in process $31,000 $7,000 Finished goods $25,000 $23,000 Lequin's total manufacturing cost was $543,000. What was Lequin's cost of goods sold?

Cost of goods sold = $564,000

Explanation:

The cost of goods sold would be determined as follows:

$

Opening inventory

Raw material = 14,000

Work in progress 31,000

Manufacturing cost 543,000

588,000

Add open inventory of Finished goods 25,000

Less Closing inventory

raw material (19,000)

Work in progress (7,000)

Total cost of goods available for sale 587,000

Less closing inventory of finished goods 23,000

Cost of goods sold 564,000

Note that the opening inventory of raw material and work in progress would increase the manufacturing cost while their respective closing inventory represent cost incurred on production during the period on inventories not yet completed