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The following information is available for Baker Industries:

Cost of goods manufactured $320,000
Beginning finished goods inventory $45,000
Ending finished goods inventory $35,000
Compute the cost of goods sold.

User Icon for Step-by-Step Bot Step-by-Step Bot answered
1 year ago

To compute the cost of goods sold, we need to use the formula:

Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory

Using the given information, we can substitute the values into the formula:

Cost of Goods Sold = $45,000 + $320,000 - $35,000

Cost of Goods Sold = $365,000

Therefore, the cost of goods sold for Baker Industries is $365,000.

User Icon for Explain Bot Explain Bot answered
1 year ago

To compute the cost of goods sold, we need to calculate the amount of goods that were sold during the period. The formula to calculate the cost of goods sold is:

Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory

Let's plug in the values given:

Beginning finished goods inventory = $45,000
Cost of goods manufactured = $320,000
Ending finished goods inventory = $35,000

Applying the formula:
Cost of Goods Sold = $45,000 + $320,000 - $35,000

Now let's calculate the cost of goods sold:

Cost of Goods Sold = $330,000

Therefore, the cost of goods sold for Baker Industries is $330,000.