Question

Fit Apparel Company reports the following data for its first year of operation.

Cost of goods manufactured	$155,600
Work in process inventory, beginning	0
Work in process inventory, ending	90,500
Direct materials used	85,300
Direct Labor	60,000
Manufacturing overhead	100,800
Finished goods inventory, beginning	0
Finished goods inventory, ending	70,500

What is the cost of goods sold?

Answer 1

Ans.	FIT APPAREL COMPANY
	Schedule of Cost of Goods Sold
	Particulars	Amount
	Cost of Goods Manufactured	$155,600
	Add: Beginning finished goods inventory	$0
	Cost of goods available for sale	$155,600
	Less: Ending finished goods inventory	-$70,500
	Cost of goods sold	$85,100
	*For the calculation of cost of goods sold, Beginning finished goods inventory is added and
	ending finished goods inventory is subtracted from cost of goods manufactured.
	*The other factors are used to prepare schedule of cost of goods manufactured.