S16-10 Computing cost of goods sold, manufacturing company Learning Objective 3 Use the following information to calculate the cost of goods sold for The Ellis Company for the month of June: Finished Goods Inventory: Beginning Balance Ending Balance Cost of Goods Manufactured $30,000 10,000 165,000
S16-10 Computing cost of goods sold, manufacturing company Learning Objective 3 Use the following information to calculate the cost of goods sold for The Ellis Company for the month of June: Finished Goods Inventory: Beginning Balance Ending Balance Cost of Goods Manufactured $30,000 10,000 165,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![**S16-10 Computing Cost of Goods Sold, Manufacturing Company**
### Learning Objective 3
Use the following information to calculate the cost of goods sold for The Ellis Company for the month of June:
| Finished Goods Inventory: | |
|-----------------------------------|----------------|
| Beginning Balance | $30,000 |
| Ending Balance | $10,000 |
| Cost of Goods Manufactured | $165,000 |
Given the data above, the Cost of Goods Sold (COGS) for The Ellis Company can be computed using the following formula:
\[ \text{COGS} = \text{Beginning Inventory} + \text{Cost of Goods Manufactured} - \text{Ending Inventory} \]
By substituting the given values:
\[ \text{COGS} = \$30,000 + \$165,000 - \$10,000 = \$185,000 \]
Therefore, the Cost of Goods Sold for The Ellis Company for the month of June is $185,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd08fd21-7e2f-4214-9769-d352731fcd2d%2F5a4efc89-d312-4def-83a9-886e6d7a4354%2Fluqz9u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**S16-10 Computing Cost of Goods Sold, Manufacturing Company**
### Learning Objective 3
Use the following information to calculate the cost of goods sold for The Ellis Company for the month of June:
| Finished Goods Inventory: | |
|-----------------------------------|----------------|
| Beginning Balance | $30,000 |
| Ending Balance | $10,000 |
| Cost of Goods Manufactured | $165,000 |
Given the data above, the Cost of Goods Sold (COGS) for The Ellis Company can be computed using the following formula:
\[ \text{COGS} = \text{Beginning Inventory} + \text{Cost of Goods Manufactured} - \text{Ending Inventory} \]
By substituting the given values:
\[ \text{COGS} = \$30,000 + \$165,000 - \$10,000 = \$185,000 \]
Therefore, the Cost of Goods Sold for The Ellis Company for the month of June is $185,000.
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