Question

Exercise 10-8 (Part Level Submission) Flounder Corporation incurred the following costs while manufacturing its product.

Materials used in product $126,000    Advertising expense $48,300

Depreciation on plant 65,900    Property taxes on plant 23,500

Property taxes on store 8,030    Delivery expense 30,200

Labor costs of assembly-line workers 115,200    Sales commissions 37,200

Factory supplies used 32,200    Salaries paid to sales clerks 55,400

Work in process inventory was $14,400 at January 1 and $17,400 at December 31. Finished goods inventory was $64,000 at January 1 and $45,900 at December 31.

Compute cost of goods manufactured.

Answer 1

Cost of goods manufactured
Direct materials used						126,000
Direct labor						115,200
Manufacturing overhead
Depreciation on plant					65,900
Factory supplies used					32,200
Property taxes on plant					23,500
Total manufacturing overhead						121,600
Total manufacturing costs						362,800
Add Work in process 1/1						14,400
Manufacturing cost to account for						377,200
less:
work in process 12/31						17,400
Cost of goods manufactured						359,800