View Full Version : Calculating Finished Goods Inventory
ericks
Jan 18, 2007, 06:54 PM
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
Oct 27, 2008, 10:20 AM
Not know
hamzashakaa
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
Oct 28, 2008, 12:47 AM
Thts a simple question.
Answer is:
B) $50,000
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www.freewebtown.com/4-10/x/t/xtrafun/extra/Cost%20of%20goods%20manufactured.doc (http://www.freewebtown.com/4-10/x/t/xtrafun/extra/Cost%20of%20goods%20manufactured.doc)
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Larrybrich
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
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
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
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
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
Jan 21, 2012, 08:28 PM
Roll over your profit. Answer is 50k.