Question

Crane Corporation incurred the following costs while manufacturing its product. Materials used in product $121,000 Advertising expense $46,000 Depreciation on plant 61,000 Property taxes on plant 15,000 Property taxes on store 7,600 Delivery expense 22,000 Labor costs of assembly-line workers 111,000 Sales commissions 36,000 Factory supplies used 24,000 Salaries paid to sales clerks 51,000
Work in process inventory was $13,000 at January 1 and $16,600 at December 31. Finished goods inventory was $61,000 at January 1 and $45,700 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 = $328,400

Cost of goods sold = $343,700

Explanation:

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

(a) Cost of goods manufactured = Direct materials used + Direct labor + Depreciation on plant + Factory supplies used + Property taxes on plant + Work in Process 1 Jan - Work-in-process, 31 Dec

= $121,000 + $111,000 + $61,000 + $24,000 + $15,000 + $13,000 - $16,600

= $328,400

(b) Cost of goods sold = Finished goods, 1 Jan + Cost of goods manufactured - Finished goods, 31 Dec

= $61,000 + $328,400 - $45,700

= $343,700

Answer 2

Answer:

Cost of goods manufactured = $328,400

Cost of goods sold =  $343,700

Explanation:

given data

Materials use product = $121,000

Advertising expense =  $46,000

Depreciation = 61,000

Property taxes =  15,000

Property taxes = 7,600

Delivery expense = 22,000

Labor costs = 111,000

Sales commissions =  36,000

Factory supplies = 24,000

Salaries paid = 51,000

Work in process inventory Jan = $13,000

Work in process inventory Dec = $16,600

Finished goods inventory Jan = $61,000

Finished goods inventory  Dec = $45,700

solution

we first get here Cost of goods manufactured that is express as

Cost of goods manufactured = Direct materials used + Direct labor + Depreciation on plant + Factory supplies used + Property taxes on plant + Work in Process Jan - Work-in-process Dec    ......................1

put here value and we get

Cost of goods manufactured =  $121,000  + 111,000  + $61,000 + $24,000 + $15,000 + $13,000 - $16,600

solve it we get

Cost of goods manufactured = $328,400

and

now we get here Cost of goods sold that is express as

Cost of goods sold = Finished goods Jan + Cost of goods manufactured - Finished goods Dec    .....................2

put here value and we get

Cost of goods sold = $61,000 + $328,400 - $45,700  

solve it

Cost of goods sold =  $343,700