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.

Required:

1. Compute cost of goods manufactured.

2. Compute cost of goods sold.

Answer 1

Cost Of Goods Manufactured = $ 357,000

Cost of Goods Sold = $ 372,000

Step-by-step explanation:

Lopez Corporation

Cost Of Goods Manufactured

All Amounts in $

Materials 120,000

Labor Costs 110,000

FOH

Depreciation (plant) 60,000

Propert taxes (store) 14,000

Property Tax 7500

Factory supplies 23,000

Total Maufacturing Costs 360,500

Add Begining Work In Process 12,000

Less Ending Work In Process 15,500

Cost of Goods Manufactured 357,000

Add Finished Goods Inventory 60,000

Less Finished Goods Inventory 45,000

Cost Of Goods Sold 372,00