Question

Lopez Corporation incurred the following costs while manufacturing its product.

Materials used in product		$129,600		Advertising expense		$49,600
Depreciation on plant		70,200		Property taxes on plant		21,000
Property taxes on store		7,690		Delivery expense		31,400
Labor costs of assembly-line workers		120,400		Sales commissions		42,400
Factory supplies used		29,200		Salaries paid to sales clerks		54,400

Work in process inventory was $14,400 at January 1 and $17,000 at December 31. Finished goods inventory was $70,200 at January 1 and $46,400 at December 31.

Compute cost of goods manufactured.

Cost of goods manufactured

$

Compute cost of goods sold.

Cost of goods sold

$

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Answer 1

Cost of goods manufactured
Beginning WIP inventory		14400
Current cost:
Material used		129600
Labour cost		120400
factory overheads:
Depreciation on plant	70200
Factory supplies	29200
Property taxes on plant	21000
factory overheads:		120400
Total Current cost			370400
Total cost of WIP			384800
Less: Ending inventory of WIP		17000
Cost of goods manufactured		367800
Cost of goods sold:
Beginning inventory of FG		70200
Add: Cost of goods sold		367800
Total cost of goods available for sale	438000
Less: Ending inventory of FG		46400
Cost of goods sold			391600