Question

Lopez Corporation incurred the following costs while manufacturing its product.
Materials used in product $129,400 Advertising expense $46,700
Depreciation on plant 63,100 Property taxes on plant 19,100
Property taxes on store 8,510 Delivery expense 29,900
Labor costs of assembly-
line workers 114,900 Sales commissions 38,300
Factory supplies used 27,900 Salaries paid to sales clerks 59,000
Work in process inventory was $13,300 at January 1 and $17,000 at December 31. Finished goods inventory was $69,700 at January 1 and $48,400 at December 31.
Compute cost of goods manufactured.
Cost of goods manufactured $ _______
Compute cost of goods sold.
Cost of goods sold $ _________

Answer 1

Answer:

Cost of goods manufactured= $350,700

Cost of goods sold= $372,000

Explanation:

The cost of goods manufactured can be calculated as follows

= Direct materials utilized + factory supplies utilized + direct labor + depreciation on plants + property taxes on plant + work in process. January 1 - work in process December 31

= 129,400 + 27,900 + 114,900 + 63,100 + 19,100 + 13,300 -17,000

= $350,700

The cost of goods sold can be calculated as follows

= finished goods on January 1 + cost of goods manufactured - finished goods on December 31

= 69,700 + 350,700 - 48,400

= $372,000