The Following Information Was Provided by Grand Company for the Year

question 105

Multiple Choice

The following information was provided by Grand Company for the year just ended:
$\begin{array}{|l|r|}\hline \text { Decrease in finished goods inventory } & \$ 4,655 \\\hline \text { Sales } & \$ 500,000 \\\hline \text { Gross margin } & \$ 100,000 \\\hline\end{array}$
What was the cost of goods manufactured for the year?

• A) $95,345.
• B) $104,655.
• C) $395,345.
• D) $404,655.

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Definitions:

Salaries Payable

A liability account that records the amount of salaries owed to employees but not yet paid.

Accrued Expenses

Expenses that have been incurred but not yet paid, recognized in the accounting period they are incurred, not when they are paid.

Cash Is Paid

A transaction method where payment for goods or services is made with cash at the point of sale or billing.

Accrued Expenses

Expenses that have been incurred but not yet paid, recognized in accounting even in the absence of supplier invoices.