Answer (B) is correct . Scurry’s cost of goods sold can be calculated as follows: Beginning inventory of finished goods $?100,000 Add: ?cost of goods manufactured 700,000 Less: ?ending inventory of finished goods (200,000) Cost of goods sold $?600,000
Answer (A) is incorrect because The amount of $500,000 results from failing to include beginning finished goods inventory.
Answer (C) is incorrect because The amount of $800,000 results from failing to subtract ending finished goods inventory.
Answer (D) is incorrect because The amount of $950,000 results from improperly including work-in-process inventories.
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