Question

Harrison Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $56,000 and the cost of goods sold during the month was S125,000. The cost of goods manufactured during July was: A) $125,000. B) $104,000. C) $117,000. D) $133,000. E) None of the answers is correct

Answer 1

Answer:

Option (D) is correct.

Explanation:

Given that,

Began July with a finished-goods inventory = $48,000

Finished-goods inventory at the end of July = $56,000

Cost of goods sold during the month = $125,000

Cost of goods manufactured during July:

= Ending finished goods inventory + Cost of goods sold - Beginning finished goods inventory

= $56,000 + $125,000 - $48,000

= $133,000