Exercise 14-8 Lopez Corporation incurred the following costs while manufacturing

Question

Exercise 14-8 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 $120,000 Advertising expense 60,000 Property taxes on 7,500 Delivery expense $45,000 14,000 21,000 35,000 50,000 plant 110,000 Sales commissions workers Salaries paid to sales Factory supplies us ed 23,000 clerks work in process inventory was 12,000 at January 1 and $15,500 at December 31, Finished goods inventory was $60,000 at January 1 and $45,600 at December 31 Your answer is incorrect. Try again Compute cost of goods manufactured Cost of goods manufactured 485000 Your answer is incorrect. Try again Compute cost of goods sold

Explanation / Answer

Particulars Amount (in $) Cost of Materials Used              120,000 Direct Labour              110,000 Factory overhead                97,000 Total Manufacturing Cost              327,000 Add: Beginning work in process inventory                12,000              339,000 Less; Ending work in process inventory                15,500 Cost of Goods Manufactured              323,500 Cost of goods sold Beginning Finished Goods Inventry                60,000 Add: Cost of Goods Manufactured              323,500 Cost of Goods Available for Sale              383,500 Less:Ending Finished Goods Inventry                45,600               337,900

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