Given the following data for Scurry Company, what is the cost of goods sold? Beginning inventory of finished goods $100,000 Cost of goods manufactured 700,000 Ending inventory of finished goods 200,000 Beginning work-in-process inventory 300,000 Ending work-in-process inventory 50,000 Select one: a. $600,000 b. $950,000 c. $500,000 d. $800,000

Scurry Company

The cost of goods sold is:

= a. $600,000

Explanation:

a) Data and Calculations:

Beginning inventory of finished goods $100,000

Cost of goods manufactured                  700,000

Ending inventory of finished goods      (200,000)

Cost of goods sold =                             $600,000

Beginning work-in-process inventory 300,000

Ending work-in-process inventory 50,000

b) The cost of goods sold includes the beginning inventory of finished goods and the cost of goods manufactured within the period, less the ending inventory of finished goods.  It does not include inventories of work-in-process.