Cost of goods manufactured by Hobte & Co for July is $419,000. At the end of July, the company had a finished goods inventory of $98,000. Cost of goods sold during June and July are $400,000 and $405,000 respectively. What is the finished goods inventory at the end of June?

To find the finished goods inventory at the end of June, we need to use the following relationship for finished goods inventory:

\[
\text{Finished Goods Inventory at the Beginning of the Month} + \text{Cost of Goods Manufactured} - \text{Cost of Goods Sold} = \text{Finished Goods Inventory at the End of the Month}
\]

### For July:
Given:
- Cost of Goods Manufactured for July = $419,000
- Cost of Goods Sold for July = $405,000
- Finished Goods Inventory at the End of July = $98,000

Using the formula:
\[
\text{Finished Goods Inventory at the Beginning of July} + 419,000 - 405,000 = 98,000
\]
\[
\text{Finished Goods Inventory at the Beginning of July} + 14,000 = 98,000
\]
\[
\text{Finished Goods Inventory at the Beginning of July} = 98,000 - 14,000 = 84,000
\]

The finished goods inventory at the beginning of July is $84,000, which is also the finished goods inventory at the end of June.

Thus, the **finished goods inventory at the end of June is $84,000**.

Would you like any further details?

Here are 5 related questions:
1. How do you calculate the cost of goods manufactured?
2. What factors affect the cost of goods sold?
3. How does finished goods inventory impact financial statements?
4. What are the differences between work-in-progress and finished goods inventories?
5. How can companies improve inventory management?

**Tip:** Keep track of inventory changes regularly to monitor and control production costs efficiently.

Learn how to calculate the finished goods inventory at the end of June for Hobte & Co. This problem involves key accounting concepts, including the cost of goods manufactured and sold, and uses the inventory equation to find the solution. Suitable for undergraduate accounting students.

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