Find gross profit for a manufacturing company. sales $530,000. Finished goods inventory on january 1 is $179000. Finished goods inventory on Dec 31 is $92000. Cost of Goods manufactured is $386200. So I factor COGS as 473200. The Manufacturing overhead was overapplied by $6800, so when we close it to COGS, the new amount comes to $466400.
The sales and minus this amount and come up with $63600. Frustratingly enough, the books says the gross profit should be $158600.
The beginning amount of finished goods is correct as well as they say the beginning amount is job 1 $8700 and job 2 $92000, which when added together, you get $179000. The only part I can imagine doing wrong is the calculation for Finished Goods inventory on Dec 31.