Question

Frederick Company's January 1, 2018 finished goods inventory was $73,000. The January 1, 2019 finished goods inventory is $57,000.  Cost of goods manufactured for the FY 2018 was $246,000. Use this information to determine the dollar amount of the FY 2018 cost of goods sold. (Round dollar values & enter as whole dollars only.)

Answer 1

January 1, 2018 finished goods inventory = $73,000.

January 1, 2019 finished goods inventory = $57,000.  

Cost of goods manufactured for the FY 2018 = $246,000.

FY 2018 cost of goods sold = January 1, 2018 finished goods inventory + Cost of goods manufactured for the FY 2018 - January 1, 2019 finished goods inventory

= 73,000 + 246,000 - 57,000

= $262,000

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