Cost of goods manufactured for Branson Books for the year was $860,000. Beginning work-in-process inventory was $40,000. Ending work-in-process was $60,000. If the beginning finished goods inventory was $400,000 and the ending finished goods inventory was $990,000. Required:
What was the cost of goods sold for the year?

The cost of goods sold for Branson Books in this year is $270,000.

Here, we are going to prepare the amount of the cost of goods sold for Branson Books.

Given Information

Cost of goods manufactured = $860,000

Beginning work-in-process = $40,000

Ending work-in-process = $60,000

Beginning finished goods = $400,000

Ending finished goods inventory = $990,000

Cost of goods sold = $860,000 + $400,000 - $990,000

Cost of goods sold = $270,000.

Therefore, the amount of the cost of goods sold for Branson Books is $270,000.

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Cost of goods sold = $270,000

Explanation:

Given:

Cost of goods manufactured = $860,000

Beginning work-in-process = $40,000

Ending work-in-process = $60,000

Beginning finished goods = $400,000

Ending finished goods inventory = $990,000

Computation:

Cost of goods sold = Cost of goods manufactured + Beginning finished goods - Ending finished goods inventory

Cost of goods sold = $860,000 + $400,000 - $990,000

Cost of goods sold = $270,000