Exercise 14-8 (Part Level Submission) Lopez Corporation incurred the following c

ID: 2588198 • Letter: E

Question

Exercise 14-8 (Part Level Submission)

Lopez Corporation incurred the following costs while manufacturing its product.

Work in process inventory was $14,000 at January 1 and $16,700 at December 31. Finished goods inventory was $61,800 at January 1 and $49,800 at December 31.

1.) Compute the Cost of Goods Manufactured

Materials used in product $130,000 Advertising expense $46,100 Depreciation on plant 64,500 Property taxes on plant 20,000 Property taxes on store 7,600 Delivery expense 26,800 Labor costs of assembly-line workers 120,900 Sales commissions 39,300 Factory supplies used 32,600 Salaries paid to sales clerks 54,900

Explanation / Answer

Answer:

Compute cost of goods manufactured

Materials used in product

130,000

Labor costs of assembly-line workers

120,900

Factory overheads

...Depreciation on plant

64500

...Property taxes on plant

20,000

...Factory supplies used

32600

Add WIP $12,000

14000

Less: WIP $15,500

-16700

Cost of goods manufactured $323,500

365,300

Cost of Goods Manufactured =$365,300