Asked by Kevin Kamtapersaud on Apr 29, 2024
Verified
Tenneson Corporation's cost of goods manufactured for the just completed month was $151,000 and its inventories were as follows: How much was the cost of goods available for sale on the Schedule of Cost of Goods Sold?
A) $137,000
B) $185,000
C) $151,000
D) $136,000
Cost of Goods Manufactured
The total production cost of goods completed during a specific period, including labor, materials, and overhead.
Inventories
Assets held for sale in the normal course of business, in the process of production, or in the form of materials to be consumed in the production process or in the rendering of services.
Cost of Goods Sold
The direct costs attributable to the production of goods sold by a company, including material, labor, and manufacturing overhead expenses.
- Ascertain the cost of manufacturing goods and the cost of goods sold within a job-order costing system.
Verified Answer
Cost of Goods Available for Sale = Beginning Inventory + Cost of Goods Manufactured
Cost of Goods Available for Sale = $34,000 + $151,000
Cost of Goods Available for Sale = $185,000
Therefore, the correct answer is B.
Learning Objectives
- Ascertain the cost of manufacturing goods and the cost of goods sold within a job-order costing system.
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