The following information is available for Baker Industries:
Cost of goods manufactured $320,000
Beginning finished goods inventory $45,000
Ending finished goods inventory $35,000
Compute the cost of goods sold.
The following information is available for Baker Industries.
Baker Industies Inc.
Trial Balance
12/31/13
Debit Credit
Cash 16
Accounts Receivable 26
Supplies 4
Equipment 191
Accumulated Depreciation 13
Accounts Payable 21
Common Stock 106
Retained Earnings 56
Dividends 11
Service Revenue 189
Salaries and Wages Expense 86
Depreciation Expense 39
Supplies Expense 12
385 385
What is the balance in Income Summary before it is closed to Retained Earnings for Baker Industries?
$41
$52
$248
$56
41
52
To compute the cost of goods sold, you would need to use the formula:
Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory
Let's plug in the given values:
Beginning Finished Goods Inventory = $45,000
Cost of Goods Manufactured = $320,000
Ending Finished Goods Inventory = $35,000
Cost of Goods Sold = $45,000 + $320,000 - $35,000
Now, let's calculate the cost of goods sold:
Cost of Goods Sold = $325,000