Work-in-process inventory was $12,000 at January 1 and $15,500at December 31. Fi

Question

Work-in-process inventory was $12,000 at January 1 and $15,500at December 31. Finished goods inventory was $60,000 at January 1and $55,600 at December 31.

Instructions

(a) Compute cost of goods manufactured.
(b) Compute cost of goods sold.

Materials used in product $100,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 14,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used 23,000 Salaries paid to sales clerks 50,000

Explanation / Answer

Compute cost of goods manufactured. materal used in product 100,000 Add: labor 110,000 210,000 Add: FoH dep on plant 60,000 factory supplied 23,000 Total FOH 293,000 Add: opning WIP 12,000 305,000 Less: closing WIP 15,500 cost of goods manfuc 289,500 Cost of good sold statement Add: Finished goods 60,000 349500 Less: finished goods closing 55,600 Cost of good sold statement 293,900

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