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- Cost of goods manufactured = $93500.
Cost of goods sold = $107900.
|SCHEDULE OF COST OF GOODS MANUFACTURED & COST OF GOODS SOLD|
|FOR AUGUST 31|
|Materials Used in production||120000|
|Direct Labor (Assembley line workers)||110000|
|Depreciation on plant||60000|
|Property taxes on plant||14000|
|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|
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