Q8: What amount will Music, Inc. report as 2021 Cost of Goods Sold on its year ending 2021 Income Statement?
Q8: What amount will Music, Inc. report as 2021 Cost of Goods Sold on its year ending 2021 Income Statement?
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 3AP
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Q8: What amount will Music, Inc. report as 2021 Cost of Goods Sold on its year ending 2021
Income Statement?
Income Statement?
![Part 2: Music, Inc.
Music, Inc. had the following beginning and ending values in its three inventory accounts:
Jan 1, 2021
$500
$1,200
$600
Dec. 31, 2021
$800
Raw Materials Inventory
Work-in-Progress Inventory
Finished Goods Inventory
$1,300
$750
Additional information for the year ending December 31, 2021:
Manufacturing costs: $2,875
Sales revenue: $15,900
Selling & Admin expenses: $3,600
Interest expense: $160
Income tax rate: 20%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0062e4a6-9690-49aa-88d1-44e3a48d2adc%2F5327145d-300e-4967-a4f2-014e7743acd3%2Fphakuab_processed.png&w=3840&q=75)
Transcribed Image Text:Part 2: Music, Inc.
Music, Inc. had the following beginning and ending values in its three inventory accounts:
Jan 1, 2021
$500
$1,200
$600
Dec. 31, 2021
$800
Raw Materials Inventory
Work-in-Progress Inventory
Finished Goods Inventory
$1,300
$750
Additional information for the year ending December 31, 2021:
Manufacturing costs: $2,875
Sales revenue: $15,900
Selling & Admin expenses: $3,600
Interest expense: $160
Income tax rate: 20%
Expert Solution
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Step 1
The cost of goods sold is the total amount your company paid as a cost directly related to the sale of products. This could include re - sale products, raw materials, packaging, and direct costs related to producing or selling the product, depending on your industry.
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