Classify the costs listed in the previous exercise as either product costs or period costs.
Gore Company makes products for sporting events. The following data are for the year ended 2010 December 31:
|
Materials inventory, 2010 January 1 |
$45,000 |
|
Materials inventory, 2010 December 31 |
65,000 |
|
Materials purchases |
175,000 |
|
Direct labor |
225,000 |
|
Work in process inventory, 2010 January 1 |
30,000 |
|
Work in process inventory, 2010 December 31 |
40,000 |
|
Manufacturing overhead |
130,000 |
|
Finished goods inventory, 2010 January 1 |
80,000 |
|
Finished goods inventory, 2010 December 31 |
140,000 |
Prepare a Cost of Goods Manufactured Statement and compute the cost of goods sold.