This is cost of goods manufactured adjusted by the amount of change in work-in-process inventory. Cost of goods sold is cost of goods manufactured adjusted by the amount of change in finished goods inventory.
Cost of goods sold is beginning finished goods inventory + cost of goods manufactured/purchases ? ending finished goods inventory. So cost of goods sold is $100,000 + $700,000 ? $200,000 = $600,000.
This is cost of goods manufactured plus beginning inventory of finished goods. Ending inventory of finished goods needs to be accounted for, as well.
This is cost of goods manufactured minus ending inventory of finished goods. Beginning inventory of finished goods needs to be accounted for, as well.
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