Beauchesne Corporation, a manufacturing company, has provided the following data for the month of May:

Raw materials purchased during May totaled $69,000 and the cost of goods manufactured totaled $146,000.

What was the cost of goods sold for May?

Question

Beauchesne Corporation, a manufacturing company, has provided the following data for the month of May:

Raw materials purchased during May totaled $69,000 and the cost of goods manufactured totaled $146,000.

What was the cost of goods sold for May?

BlackTom AI · Accepted Answer

Cost of goods sold = Beginning finished goods + Cost of goods manufactured − Ending finished goods.

Relevant concepts:
- Cost of goods manufactured (COGM) is the total cost of goods completed during the period.
- Finished goods inventory flows: Beginning Finished Goods + COGM = Goods available for sale; subtract Ending Finished Goods to get Cost of Goods Sold (COGS).
- Raw materials purchased and raw materials used relate to COGM (can be checked for consistency).

Step-by-step calculation with intermediate steps:
1. Identify beginning and ending finished goods from the data:
   - Beginning finished goods = $57,000
   - Ending finished goods = $28,000
2. Use the given cost of goods manufactured:
   - COGM = $146,000
3. Compute goods available for sale:
   - Goods available for sale = Beginning finished goods + COGM
   - = $57,000 + $146,000
   - = $203,000
4. Subtract ending finished goods to get COGS:
   - COGS = Goods available for sale − Ending finished goods
   - = $203,000 − $28,000
   - = $175,000

Additional consistency check (raw materials used):
- Raw materials used = Beginning raw materials + Purchases − Ending raw materials
- = $36,000 + $69,000 − $24,000 = $81,000
This $81,000 would be part of the manufacturing costs that, together with labor and overhead, produce the stated COGM of $146,000 (no contradiction).

Why the correct answer is correct:
- The COGM tells how much cost was transferred into finished goods during May; adding beginning finished goods gives total goods available; subtracting ending finished goods removes the portion not sold, leaving the cost of goods actually sold.

Why other multiple-choice options are incorrect:
- $28,000 is merely the ending finished goods inventory, not COGS.
- $203,000 is goods available for sale (Beginning FG + COGM) before subtracting ending FG, so it overstates COGS.
- $146,000 is only the cost of goods manufactured, not adjusted for beginning/ending finished goods.

Conclusion: The cost of goods sold for May is $175,000, which matches the provided answer.

Beauchesne Corporation, a manufacturing company, has provided the following data for the month of May: Raw materials purchased during May totaled $69,000 and the cost of goods manufactured totaled $146,000. What was the cost of goods sold for May?单项选择题

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Beauchesne Corporation, a manufacturing company, has provided the following data for the month of May: Raw materials purchased during May totaled $69,000 and the cost of goods manufactured totaled $146,000. What was the cost of raw materials used in production during May?

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