Using the following data for a recent period, calculate the beginning finished g
ID: 2412030 • Letter: U
Question
Using the following data for a recent period, calculate the beginning finished goods inventory: Sales.......................................................... $40,000
Beginning finished goods inventory......... ?
Cost of goods manufactured..................... $16,000
Ending finished goods inventory.............. $5,000 Cost of goods sold.................................... ? Gross margin............................................. $17,000
Administrative and selling expenses......... ?
Net operating income................................ $10,000 T
he beginning finished goods inventory was: a. $24,000 b. $23,000 c. $7,000 d. $12,000
Explanation / Answer
d. $12,000
Cost of goods sold = Sales ? Gross margin
Cost of goods sold = $40,000 ? $17,000
Cost of goods sold = $23,000
Beginning finished goods inventory = Cost of goods sold - Cost of goods manufactured + Ending finished goods inventory = $23,000 - $16,000 + $5,000 = $12,000
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