A manufacturing company had a balance in Finished Goods inventory of $200,000 on 12/31/2011. During 2012, the company transferred $1,000,000 of costs from Work in Process to Finished Goods. A count of inventory at the end of the year revealed a balance in Finished Goods of $400,000 at 12/31/2012. What was Cost of Goods Sold during 2012

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noble01 · Accepted Answer

Answer: the cost of goods sold during the year 2012 is $800,000Explanation:The computation of the cost of goods sold is shown below;Costs of Goods Sold during 2012 is= Transferred from Work in Process + Beginning Inventory - Ending Inventory= $1,000,000 + $200,000 - $400,000= $800,000Hence, the cost of goods sold during the year 2012 is $800,000

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