Question

Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used $126,400 Advertising expense 61,000 Property taxes on plant 7,650 Delivery expense 113,500 Sales commissions 29,300 Salaries paid to sales clerks $54,100 21,800 27,300 38,400 55,400 Work in process inventory was $14,600 at January 1 and $16,700 at December 31. Finished goods inventory was $70,900 at January 1 and $49,100 at December 31. Compute cost of goods manufactured. Cost of goods manufactured Compute cost of goods sold. Cost of goods sold

Answer 1

Cost of goods manufactured = Total manufacturing costs + Beginning work in process - Closing work in process

Cost of goods manufactured = 352000 + 14600 - 16700

Cost of goods manufactured = 349900

Working note:

Total manufacturing cost =materials used in production + Labor cost + Depreciation on plant + Factory supplies used + Property tax on plant

Total manufacturing cost = 126400 + 113500 + 61000 + 29300 + 21800

Total manufacturing cost = $352000

Cost of goods sold = Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory

Cost of goods sold = 349900 + 70900 - 49100

Cost of goods sold = 371700