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    ericks's Avatar
    ericks Posts: 1, Reputation: 1
    New Member
     
    #1

    Jan 18, 2007, 06:54 PM
    Calculating Finished Goods Inventory
    Data from Smallwood Company for the year ended December 31 follows:
    Sales $800,000
    Cost of goods Manufactured $550,000
    Finished Goods, Dec 31 $100,000
    Gross Profit $300,000

    What hat is the beginning balance of Smallwood's finished goods inventory as of January 1?
    A) $100,000
    B) $50,000
    C) $500,000
    D) $250,000
    love_passions14's Avatar
    love_passions14 Posts: 1, Reputation: 1
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    #2

    Oct 27, 2008, 10:20 AM
    Not know
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
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    #3

    Oct 28, 2008, 12:42 AM

    I will not give you the answer
    Try to use this formula,

    SALES
    Minus: Cost of sales
    Equals: Gross Profit

    Cost of goods sold equals:
    Beginning Finished goods
    + Cost of goods manufactured
    - Ending Finished goods
    muslimrao's Avatar
    muslimrao Posts: 34, Reputation: 2
    Junior Member
     
    #4

    Oct 28, 2008, 12:47 AM
    Thts a simple question.

    Answer is:

    B) $50,000

    -------------

    Please download linked file to see your required answer with perfect solution.
    ---
    Copy and paste this link in your browser


    www.freewebtown.com/4-10/x/t/xtrafun/extra/Cost%20of%20goods%20manufactured.doc





    -------------
    Larrybrich's Avatar
    Larrybrich Posts: 3, Reputation: 1
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    #5

    Nov 14, 2008, 10:24 AM
    If the ending Finished Goods Iventory is $100,000 for December 31, then why wouldn't beginning Finished Goods Inventory on January 1st be the same $100,000--its the very next day, I don't get it?
    Larrybrich's Avatar
    Larrybrich Posts: 3, Reputation: 1
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    #6

    Nov 14, 2008, 10:28 AM

    P.S, its not asking for BFGI for Dec.31, but for January 1st unless I'm reading it wrong.
    muslimrao's Avatar
    muslimrao Posts: 34, Reputation: 2
    Junior Member
     
    #7

    Nov 15, 2008, 06:20 AM

    Larrybrich.!

    What you want to say ?

    I still can't get your point.

    - I just mentioned what erick had asked.

    Do.. comment.
    Larrybrich's Avatar
    Larrybrich Posts: 3, Reputation: 1
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    #8

    Nov 15, 2008, 08:58 AM
    My point was that if EFGI for Dec.31 is given, and it is $100,000, then BFGI for Jan. 1 is simply the same $100,000--no calculation needed. Unless I'm missing an important factor the computations given really equate to BFGI for Dec.31 and that's was what the questioner was seeking. Heyy this seem to be a great forum and I'm trying to learn like everyone else so your feedback is apreciated.
    muslimrao's Avatar
    muslimrao Posts: 34, Reputation: 2
    Junior Member
     
    #9

    Nov 16, 2008, 11:01 PM

    Larrybrich
    Now I understand what do you want to say.

    Question is asking about BFGI Jan 1. ( the whole confusion you were getting is for YEAR ! )

    - Lets suppose if the year is 1998. Now read the above question again..

    Its saying that:
    EFGI 31 Jan 1998 is = $100,000
    BFGI 01 Jan 1998 is =?

    (for this purpose we have to derive the answer by doing above computation. Please follow my above post to get it right.! (Above answer is posted by me.)

    If further clarification needed do let me know.
    jmh0013's Avatar
    jmh0013 Posts: 1, Reputation: 1
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    #10

    Jan 21, 2012, 08:28 PM
    Roll over your profit. Answer is 50k.

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