Question

Lopez Corporation incurred the following costs while manufacturing its product.

Materials used in product $124,260 Advertising expense $49,670
Depreciation on plant 69,650 Property taxes on plant 21,750
Property taxes on store 8,290 Delivery expense 27,060
Labor costs of assembly-line 120,570 Sales commissions 43,390
Factory supplies used 25,810 Salaries paid to sales clerks 56,110
Work in process inventory was $13,700 at January 1 and $17,590 at December 31. Finished goods inventory was $66,410 at January 1 and $49,060 at December 31.
Compute the cost of goods manufactured.

Answer 1

$358,150

Step-by-step explanation:

Cost of goods manufactured is calculated in a Schedule of Manufacturing Costs as follows :

Cost of goods manufactured = Beginning Work In Process + Total Manufacturing Costs - Ending Work In Process

where,

Total Manufacturing Costs :

Materials used in product $124,260

Depreciation on plant $69,650

Property taxes on plant $21,750

Labor costs of assembly-line $120,570

Factory supplies used $25,810

Total $362,040

therefore,

Cost of goods manufactured = $13,700 + $362,040 - $17,590 = $358,150