The Manufacturing Operations of Beam Company Had the Following Inventory

question 86

Multiple Choice

The manufacturing operations of Beam Company had the following inventory balances for 2012: If Beam's cost of goods manufactured for 2012 was $152,000, what was Beam's cost of goods sold for the year?

• A) $120,000
• B) $152,000
• C) $172,000
• D) $184,000

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Definitions:

Production Budget

is a financial plan that estimates the cost of production based on projected product volumes, including costs of materials, labor, and overhead.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated using inventory valuation methods such as FIFO, LIFO, or weighted average.

Budgeted Sales

Projected amounts of sales for a future period, used for planning and performance evaluation purposes.

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and overhead.