Question

Lopez Corporation incurred the following costs while manufacturing its product:

Materials used in product $130,000 Advertising expense $46,100
Depreciation on plant $64,500 Property taxes on plant $20,000
Property taxes on store $7,600 Delivery expense $26,800
Labor costs of
assembly-line workers $120,900 Sales commissions $39,300
Factory supplies used $32,600 Salaries paid to sales clerks $54,900
Work in process inventory was $14,000 at January 1 and $16,700 at December 31.
Finished goods inventory was $61,800 at January 1 and $49,800 at December 31.
Required:
Compute cost of goods manufactured.
Cost of goods manufactured $

Answer 1

Cost of goods manufactured is $365,300

Step-by-step explanation:

Particulars Amount $

Materials used in product 130,000

Labor costs of assembly-line workers 120,900

250,900

Factory overheads

Depreciation on plant 64,500

Property taxes on plant 20,000

Factory supplies used 32,600

Add Work In Progress 14,000

Less: Work In Progress -16,700 114,400

Cost of goods manufactured $365,300