Practice Exercise 2 Lopez Corporation incurred the following costs while manufac

Question

Practice Exercise 2 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 114,800 Sales commissions Factory supplies used $55,800 23,100 24,800 43,600 60,400 $128,900 Advertising expense 63,400 Property taxes on plant 8,280 Delivery expense 32,100 Salaries paid to sales clerks Work in process inventory was $14,200 at January 1 and $16,900 at December 31. Finished goods inventory was $63,300 at January 1 and $48,200 at December 31. Compute cost of goods manufactured. Cost of goods manufactured Compute cost of goods sold Cost of goods sold

Explanation / Answer

SSolution

1.

Cost of good manufactured:

Material used in production=$128,900

Add:Labour costs of assembly line workers=$114,800

Add Factory overheads:

Depreciation on plant=$63,400

Property taxes on plant=$23,100

Factory supplies used=$32,100

Add WIP inventory jan 1=$14,200

Less WIP inventory Dec 31=$16,900

Cost of good manufactured=$359,600

2.

Cost of good sold:

Beginning finished goods inventory=$63,300

Add cost of good manufactured=$359,600

Less: ending finished goods inventory=$48,200

Cost of good sold=$374,700

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.