Question

Below are data from the income statement of Brown, Inc: Beginning finished goods inventory $16,000Ending finished goods inventory $21,000 Cost of goods sold $43,000 Gross margin from sales $39,000Operating expenses; Marketing and selling $20,000Net income $19,000What was Brown's cost of goods manufactured?

Answer 1

Answer:

Cost of goods manufactured = $48,000

Explanation:

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

In the given information, the cost of goods sold = $43,000

Beginning inventory = $16,000

Ending finished goods inventory = $21,000

Thus, putting value in equations we have:

$43,000 = $16,000 + cost of goods manufactured - $21,000

$43,000 + $21,000 - $16,000 = Cost of goods sold

$48,000 = Cost of goods manufactured.