Answer:
Cost of goods manufactured for April is $915,500
Explanation:
The costs of goods manufactured can be ascertained by adding closing inventory of goods to costs of sales and deducting opening inventory of goods manufactured.
The costs of good sold is simply sales revenue minus gross margin
sales revenue is $1,590,000
gross margin is $645,000
costs of goods sold=$1,590,000-$645,000=$945,000
Cost of goods manufactured =$945,000+$104,500-$134,000=$915,500
This is similar to a typical income statement but the difference lies in working backwards to arrive at the costs of goods manufactured by deducting opening stock of finished goods while adding the closing inventory of finished goods.
Answer:
$915,500
Explanation:
Meade Enterprises
Sales revenue $ 1,590,000
Less Gross margin $ 645,000
Cost of goods sold $945,000
Hence;
Beginning finished goods inventory $ 134,000
Less Ending finished goods inventory $ 104,500 =$29,500
Thus:
Cost of goods sold $945,000 -$29,500
=$915,500 cost of goods manufactured for April
Therefore the cost of goods manufactured for April will be $915,500
