Question

Compute cost of goods sold using the following information:

Finished goods inventory, beginning . . . . . . . . . . . . . . . . . . . . $ 500

Cost of goods manufactured . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000

Finished goods inventory, ending . . . . . . . . . . . . . . . . . . . . . . . 750

Short answer

The cost of goods sold equals $3,750.

Step-by-step solution

Explanation of the cost of goods sold

The cost of goods sold indicates the total costs incurred by the business entity for the sold product.

Schedule of cost of goods sold

Particulars	Amount
Finished goods inventory, beginning	$500
Cost of goods manufactured	4,000
Cost of goods available for sale	$4,500
Less: Finished goods inventory, ending	(750)
Cost of goods sold	$3,750