Question

Question 1 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 $130,300 Advertising expense $55,200 24,300 26,100 38,100 59,300 62,500 Property taxes on plant 8,270 Delivery expense 116,100 Sales commissions 34,000 Salaries paid to sales clerks Work in process inventory was $14,400 at January 1 and $17,600 at December 31. Finished goods inventory was $61,100 at January 1 and $48,500 at December 31. Compute cost of goods manufactured Cost of goods manufactured s Compute cost of goods sold. Cost of goods sold

Answer 1

(a) Cost of goods manufactured = Direct materials used + Direct labor + Depreciation on plant + Factory supplies used + Property taxes on plant + Work in Process 1/1 - Work-in-process, 12/31

Cost of goods manufactured = $130,300 + $116,100 + $62,500 + $34,000 + $24,300 + $14,400 - $17,600

Cost of goods manufactured = $364,000

(b) Cost of goods sold = Finished goods, 1/1 + Cost of goods manufactured - Finished goods, 12/31

Cost of goods sold = $61,100 + $364,000 - $48,500

Cost of goods sold = $376,600