Question

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 workers 110,000 Sales commissions 35,000 Factory supplies used 23,000 Salaries paid to sales 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. Compute cost of goods manufactured. Cost of goods manufactured? and cost of goods sold?

Answer 1

Answer- Cost of goods manufactured = $93500.

Cost of goods sold = $107900.

Explanation-

LOPEZ CORPORATION
SCHEDULE OF COST OF GOODS MANUFACTURED & COST OF GOODS SOLD
FOR AUGUST 31
PARTICULARS	AMOUNT	AMOUNT
	$	$
Materials Used in production		120000
Direct Labor (Assembley line workers)		110000
Factory Overhead
Depreciation on plant	60000
Property taxes on plant	14000
Factory supplies	23000
Total current manufacturing costs		97000
Add- Beginning Work in Process Invenotry		12000
Total work in process		109000
Less- Ending Work in Process Invenotry		15500
Cost of goods manufactured		93500
Add-Beginning finished goods inventory		60000
Cost of goods available for sale		153500
Less: Ending finished goods inventory		45600
Cost of goods sold		107900