Question

Managerial Accounting  

E15-8 Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 14,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line Sales commissions 35,000 workers 110,000 Salaries paid to sales Factory supplies used 23,000 clerks 50,000 Work in process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000 at January 1 and $45,600 at December 31. Instructions (a) Compute cost of goods manufactured. (b) Compute cost of goods sold.

Answer 1

$ 12,000 $ $ 120,000 110,000 Lopez Corporation Cost of Goods Manufactured Schedule For Year Ended December 31, 2017 Work In Process, Jan 1 Materials Used in Product Labor Costs of assembly-line workers Factory Overhead Depreciation on Plant $ 60,000 Property taxes on plant S 14.000 Factory Supplies used S 23.000 Total Factory Overhead Total Manufacturing Costs Total cost of work in process Less: Ending Work in process Cost of goods Manufactured $ 97.000 S 327,000 $ 339,000 S 15,500 $ 323,500 b. Finished Goods Cost of Goods Manufactured Cost of Goods Available for Sale Finished Goods Cost of goods sold $ $ $ S $ 60,000 323,500 383,500 45,600 337.900