Question

..1 T-Mobile LTE 1:18 PM E1.8 (LO 3), AP Lopez Corporation incurred the following costs while manufacturing its product. Compute cost of goods manufactured and sold. Materials used in product $120,000 Advertising expense $45,000 Depreciatio non plant Property taxes on plant 60,000 14,000 Property taxes on store Delivery expense 7,500 21,000 Labor costs of assembly-li ne workers Sales commissio ns 110,000 35,000 Factory supplies used Salaries paid to sales clerks 23,000 50,000 Work in process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000 at

Answer 1

a.

Schedule of Cost of Goods Sold
Materials used in product		$120,000
Labor cost of assembly-Line workers		110,000
Factory overhead:
Factory supplies used	$23,000
Depreciation on plant	60,000
Property taxes on plant	14,000	97,000
Total manufacturing costs			$327,000
Beginning work in process			12,000
Ending work in process			(15,500)
Cost of goods manufactured			$323,500

b.

Schedule of Cost of Goods Sold
Cost of goods manufactured	$323,500
Beginning finished goods inventory	60,000
Cost of goods available for sale	383,500
Ending finished goods inventory	(45,600)
Cost of goods sold	$337,900