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For the year just ended, Cole Corporation's manufacturing costs (raw materials used, direct labor, and manufacturing overhead) totaled $1,500,000. Beginning and ending work-in-process inventories were $60,000 and $90,000, respectively. Cole's balance sheet also revealed respective beginning and ending finished-goods inventories of $250,000 and $180,000. On the basis of this information, how much would the company report as cost of goods manufactured (CGM) and cost of goods sold (CGS)

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Answer:

The company report  the cost of goods manufactured (CGM) and cost of goods sold (CGS) of $1,470,000 and $1,540,000 respectively.

Explanation:

The formula to compute cost of goods manufactured (CGM) is shown below

= Total manufacturing cost + beginning work in process inventories - ending work in process inventories

= $1,500,000 + $60,000 - $90,000

= $1,470,000

Hence, the cost of goods manufactured is $1,470,000

And, The formula to compute cost of goods sold (CGS) is shown below

= Cost of goods manufactured + beginning finished goods inventories - ending finished goods inventories

= $1,470,000+ $250,000 - $180,000

= $1,540,000

Hence, the cost of goods sold is $1,540,000

Thus, the company report  the cost of goods manufactured (CGM) and cost of goods sold (CGS) of $1,470,000 and $1,540,000 respectively.

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