Lopez Corporation incurred the following costs while manufacturing its product.
|
Materials used in product |
$120,000 |
|
Depreciation on plant |
60,000 |
|
Property taxes on store |
7,500 |
|
Labor costs of assembly-line workers |
110,000 |
|
Factory supplies used |
23,000 |
|
Advertising expense |
$45,000 |
|
Property taxes on plant |
14,000 |
|
Delivery expense |
21,000 |
|
Sales commissions |
35,000 |
|
Salaries paid to sales clerks |
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 January 1 and $45,600 at December 31.
Instructions
(a)Compute cost of goods manufactured.
(b)Compute cost of goods sold.