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 use the formula:
Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory
Using the given information, we can substitute the values into the formula:
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 calculate the amount of goods that were sold during the period. The formula to calculate the cost of goods sold is:
Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory
Let's plug in the values given:
Beginning finished goods inventory = $45,000
Cost of goods manufactured = $320,000
Ending finished goods inventory = $35,000
Applying the formula:
Cost of Goods Sold = $45,000 + $320,000 - $35,000
Now let's calculate the cost of goods sold:
Cost of Goods Sold = $330,000
Therefore, the cost of goods sold for Baker Industries is $330,000.