[irelandcw]

Hi. I’ve encountered two questions that compute COGS in two different ways.

1st way: COGS = Beg FG + COGM – End FG

2nd way: Beg FG + Goods Transfered – COGS (Solve for X) = End FG

Could anyone provide some insight on the difference?

[G]

I believe COGM is the same as goods transferred. If you use T accounts you would transfer COGM from the WIP account to F/G. The latter part is just adding or subtracting COGS or ending FG from either side of the question.

FAR - 78
AUD - 90
BEC - 87
REG - TBD

[G]

*equation not question

FAR - 78
AUD - 90
BEC - 87
REG - TBD

[irelandcw]

Yep! You're right. Thanks for that!

[nika_cpa]

It is the same thing. just #1 presented as T account and #2 is as simple eqation! Use t accounts! They help to solve tons of questions for FAR!

Becker self-study, Wiley Test Bank and books, Becker final review. NINJA MCQ bank and NINJA notes for BEC only!

AUD - PASSED!
FAR - PASSED!
REG - PASSED!
BEC - PASSED!

[Author]

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