Slade Corporation incurred the following costs manufacturing its product. Materi

Question

Slade Corporation incurred the following costs manufacturing its product.

Materials used in product $130,000                                        Advertising expense                      $49,000

Depreciation on plant             65,000                                          Property taxes on plant                16,000

Property taxes on store             7,700                                         Delivery expense                             20,000

Labor costs of assembly line 112,000                                       Sales commissions                           31,000   

Workers

Factory supplies used               24,000                                        Salaries paid to sales clerk            58,000

Work in process inventory $23,000 at Jan 1 and 15, 800 at Dec. 31

Finished goods inventory was $67,000 at Jan 1 and $52,600 at Dec 31

A. Compute cost of goods manufactured

B.  Compute costs of goods sold.

Please provide detailed information.  Gracias

Explanation / Answer

Hi,

Please find the answer as follows:

Part A:

Cost of Goods Manfactured = 354200

Part B:

Cost of Goods Sold = 354200 (Cost of Goods Manfactured) + 67000 (Opening Finished Goods Inventory) - 52600 (Closing Finished Goods Inventory) = 368600

Thanks.

Cost of Goods Manufactured Item
Amount Materials Used in the Product
130000 Labor costs of assembly line
112000 Manufacturing Overheads

Depreciation on plant 65000
Property taxes on plant 16000
Factory supplies used 24000 105000 Total Manufacturing Cost
347000 Add Opening Work in Process
23000 Less Closing Work in Process
15800 Cost of Goods Manufactured
354200

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