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.
To compute the cost of goods sold, we need to consider the beginning finished goods inventory, add the cost of goods manufactured, and subtract the ending finished goods inventory.
Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory
Substituting the given values, we have:
Cost of Goods Sold = $45,000 + $320,000 - $35,000
Cost of Goods Sold = $365,000
Therefore, the cost of goods sold for Baker Industries is $365,000.
To compute the cost of goods sold, we need to consider the beginning finished goods inventory, the cost of goods manufactured, and the ending finished goods inventory.
The formula for calculating the cost of goods sold is as follows:
Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory
Now, let's apply the formula to the given information:
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 = $330,000
Therefore, the cost of goods sold for Baker Industries is $330,000.