
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![### Cost of Goods Manufactured Calculation
**Information Provided:**
From ABC Company's general ledger for the month of September:
- **Beginning Finished Goods Inventory:** $61,600
- **Ending Finished Goods Inventory:** $56,000
- **Cost of Goods Sold for September:** $144,000
**Required:**
Determine the cost of goods manufactured by ABC Company for the month of September.
#### Formula to Use:
\[ \text{Cost of goods sold} = \text{Beginning finished goods inventory} + \text{Cost of goods manufactured} - \text{Ending finished goods inventory} \]
#### Steps:
1. Start with the cost of goods sold for September, which is $144,000.
2. Add the ending finished goods inventory: $144,000 + $56,000 = $200,000.
3. Subtract the beginning finished goods inventory from the total: $200,000 - $61,600 = $138,400.
Thus, the cost of goods manufactured for September is calculated to be **$138,400**.
#### Output Box:
Below the calculation is a highlight box visually indicating where the answer should be placed:
- **Cost of goods manufactured:** `__138,400__`](https://content.bartleby.com/qna-images/question/d2fe6a07-c405-4207-a087-23ef0e82e7a3/a9aa2c95-bb74-4ac2-9a9e-e313092a9979/nyxopuw_thumbnail.jpeg)
Transcribed Image Text:### Cost of Goods Manufactured Calculation
**Information Provided:**
From ABC Company's general ledger for the month of September:
- **Beginning Finished Goods Inventory:** $61,600
- **Ending Finished Goods Inventory:** $56,000
- **Cost of Goods Sold for September:** $144,000
**Required:**
Determine the cost of goods manufactured by ABC Company for the month of September.
#### Formula to Use:
\[ \text{Cost of goods sold} = \text{Beginning finished goods inventory} + \text{Cost of goods manufactured} - \text{Ending finished goods inventory} \]
#### Steps:
1. Start with the cost of goods sold for September, which is $144,000.
2. Add the ending finished goods inventory: $144,000 + $56,000 = $200,000.
3. Subtract the beginning finished goods inventory from the total: $200,000 - $61,600 = $138,400.
Thus, the cost of goods manufactured for September is calculated to be **$138,400**.
#### Output Box:
Below the calculation is a highlight box visually indicating where the answer should be placed:
- **Cost of goods manufactured:** `__138,400__`
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