Question

Lopez Corporation incurred the following costs while manufacturing its product.Materials used in product $129,600 Advertising expense $49,600Depreciation on plant 70,200 Property taxes on plant 21,000Property taxes on store 7,690 Delivery expense 31,400Labor costs of assembly-line workers 120,400 Sales commissions 42,400Factory supplies used 29,200 Salaries paid to sales clerks 54,400Work in process inventory was $14,400 at January 1 and $17,000 at December 31. Finished goods inventory was $70,200 at January 1 and $46,400 at December 31.1A: Cost of good manufactured:1B: Cost of goods sold:

Answer 1

Answer:

$367,800; $391,600

Explanation:

Manufacturing overhead:

= Depreciation on plant + Factory supplies used + Property tax on plant

= 70,200 + 29,200 + 21,000

= 120,400

Total manufacturing cost:

= Material used in production + Labor cost + Manufacturing overhead

= $129,600 + 120,400 + 120,400

= 370,400

Cost of good manufactured:

= Beginning work in process + Total manufacturing cost - Ending work in process

= 14,400 + 370,400 - 17,000

= $367,800

Cost of goods sold:

= cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory

= $367,800 + 70,200 + 46,400

= $391,600