Compute cost of goods sold for the period using the following information.
finished goods inventory, beginning $ 374,000
work in process inventory, beginning 84,500
work in process inventory, ending 73,200
cost of goods manufactured 961,300
finished goods inventory, ending 319,000

Cost of sold goods= $1,027,600

Explanation:

The cost of goods sold refers to the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the goods along with the direct labor costs used to produce the goods. It excludes indirect expenses, such as distribution costs and sales force costs.

COGS=Beginning Inventory+Production during period−Ending Inventory

We need to calculate the production during the period.

Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress

Cost of manufactured period=84,500+961,300-73,200

= $972,600

Cost of sold goods= $374,000 + $972,600 - $319,000

Cost of sold goods= $1,027,600