Question

Lopez Corporation incurred the following costs while manufacturing its product.

Materials used in product		$130,000		Advertising expense		$46,100
Depreciation on plant		64,500		Property taxes on plant		20,000
Property taxes on store		7,600		Delivery expense		26,800
Labor costs of assembly-line workers		120,900		Sales commissions		39,300
Factory supplies used		32,600		Salaries paid to sales clerks		54,900

Work in process inventory was $14,000 at January 1 and $16,700 at December 31. Finished goods inventory was $61,800 at January 1 and $49,800 at December 31.

Compute cost of goods manufactured. Cost of goods manufactured

please include all answers. thank you

Answer 1

a) Compute cost of goods manufactured
Materials used in product $130,000
Labor costs of assembly-line workers 120,900
Factory overheads
...Depreciation on plant 64,500
...Property taxes on plant 7,600
...Factory supplies used 32,600
Add WIP $14,000
Less: WIP $16,700
Cost of goods manufactured $352,900

(b) Compute cost of goods sold
Beginning FG $61,800
Cost of goods mfd $352,900
less Ending FG $49,800
COGS $364,900

The other items not used above are operating expenses and do not go into the calculation of either (a) or (b)