Question

Wildhorse 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. Compute cost of goods manufactured.

Answer 1

Answer:

$365,300

Explanation:

The computation of cost of goods manufactured is shown below:-

Materials used in product                        $130,000

Labor costs of assembly-line workers   $120,900

Factory overheads

Depreciation on plant                              $64,500

Property taxes on plant                            $20,000

Factory supplies used                              $32,600

Add Work in progress $12,000               $14,000

Less: Work in progress $15,500               $16,700

Cost of goods manufactured                  $365,300