* Question 8 Lopez Corporation incurred the following costs while manufacturing
ID: 2413609 • Letter: #
Question
* Question 8 Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers 114,900 Sales commissions Factory supplies used $46,700 19,100 29,900 38,300 59,000 $129,400 Advertising expense 63,100 Property taxes on plant 8,510 Delivery expense 27,900 Salaries paid to sales clerks 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 Question Attempts: O of 2 usedExplanation / Answer
Solution:
Part 1 --- Cost of Goods Manufactured = $350,700
Schedule of Cost of Goods Manufactured
$$
$$
Direct materials used in production
$129,400
Direct Labor Costs
$114,900
Manufacturing Overheads:
Depreciation on Plant
$63,100
Factory supplies used
$27,900
Property taxes on Plant
$19,100
Total Manufacturing Overhead Costs
`
$110,100
Total Manufacturing Costs
$354,400
Plus: Beginning Inventory Work In Process
$13,300
Total cost of work in process
$367,700
Less: Ending Work in Process Inventory
$17,000
Cost of Goods Manufactured
$350,700
Part 2 --- Cost of Goods Sold = $372,000
Schedule of Cost of Goods Sold
$$
Cost of Goods Manufactured
$350,700
Plus: Beginning Finished Goods Inventory
$69,700
Cost of Goods Available for Sale
$420,400
Less: Ending Finished Goods Inventory
$48,400
Cost of Goods Sold
$372,000
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Schedule of Cost of Goods Manufactured
$$
$$
Direct materials used in production
$129,400
Direct Labor Costs
$114,900
Manufacturing Overheads:
Depreciation on Plant
$63,100
Factory supplies used
$27,900
Property taxes on Plant
$19,100
Total Manufacturing Overhead Costs
`
$110,100
Total Manufacturing Costs
$354,400
Plus: Beginning Inventory Work In Process
$13,300
Total cost of work in process
$367,700
Less: Ending Work in Process Inventory
$17,000
Cost of Goods Manufactured
$350,700
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