Answer:
(a) $353,400
(b) $375,200
Explanation:
Given that,
Materials used in product = $123,900
Advertising expense = $49,600
Depreciation on plant = 67,500
Property taxes on plant = 23,400
Property taxes on store = 8,420
Delivery expense = 24,000
Labor costs of assembly-line workers = 116,200
Sales commissions = 41,100
Factory supplies used = 24,600
Salaries paid to sales clerks = 53,000
(a) Cost of goods manufactured:
= Material used in product + Depreciation on plant + Labor costs of assembly-line workers + Factory supplies used + Property taxes on plant + Beginning Work in process inventory - Ending Work in process inventory
= $123,900 + $67,500 + $116,200 + $24,600 + $23,400 + $14,700 - $16,900
= $353,400
(b) Cost of goods sold:
= Cost of goods Manufactured + Opening finished goods - Closing finished goods
= $353,400 + $70,700 - $48,900
= $375,200
