Learning Objective 01-P1: Prepare an income statement and balance sheet for a manufacturer.

 Learning Objective 01-P1: Prepare an income statement and balance sheet for a manufacturer.

A manufacturer adds beginning finished goods inventory to cost of goods manufactured and then subtracts ending finished goods inventory to get cost of goods sold. A merchandiser adds beginning merchandise inventory to cost of goods purchased and then subtracts ending merchandise inventory to get cost of goods sold.

 Assume that Speedboat Company has beginning finished goods inventory of $10,000; ending finished goods inventory of $150,000; goods available for sale of $210,000; and cost of goods manufactured of $200,000. What is its cost of goods sold?
 
multiple choice

    $20,000
    $50,000
    $60,000 Correct
    $370,000
    $340,000

 Answer

 $60,000

Thanks