https Gradebook ORION Downloadable eTextbook CALOULATOR ER V

https// Gradebook ORION Downloadable eTextbook CALOULATOR ER VERSION Exercise 14 B Lopez Corporation incurred the following costs while manufacturing its product Materials used in product Depredation on plant Property taxes on store Labor costs of assembly-ine workers 111,000 Sales commissions Factory supplies used $121,000 Advertising expense $46,000 61,000 Property taxes on plant 15,000 22,000 6,000 24,000 Salaries paid to sales derks 51,000 7,600 Delivery expense Work in process inventory was $13,000 at Jansary 1 and $16,600 at December 31. Finished goods inventory was 961,000 at January 1 and $45,00 at Decomber 31. Compute cost of goods manufactured Cost of oods manufactured APPLIED Compute cost of goods sold Cost of goods sold Click if you would like to Show Work for this question: n Show. s VB NM

Solution

Requirement 1:

Computation of cost of goods manufactured:

Material used in product

$       121,000

Add: Labor cost of assembly-line workers

$       111,000

Factory overhead:

Add: Depreciation on plant

$         61,000

Add: Property taxes on plant

$         15,000

Add: Factory supplies used

$         24,000

Add: Beginning WIP

$         13,000

Less: Ending WIP

$       (16,600)

Cost of goods manufactured

$       328,400

Requirement 2:

Computation of cost of goods sold:

Beginning FG

$         61,000

Add: Cost of goods manufactured

$       328,400

Less: Ending FG

$         45,700

Cost of goods sold

$       343,700

Material used in product	$       121,000
Add: Labor cost of assembly-line workers	$       111,000
Factory overhead:
Add: Depreciation on plant	$         61,000
Add: Property taxes on plant	$         15,000
Add: Factory supplies used	$         24,000
Add: Beginning WIP	$         13,000
Less: Ending WIP	$       (16,600)
Cost of goods manufactured	$       328,400