Lopez Corporation incurred the following costs while manufacturing its product.

Question

Lopez Corporation incurred the following costs while manufacturing its product.

Work in process inventory was $14,580 at January 1 and $17,300 at December 31.

Finished goods inventory was $65,900 at January 1 and $47,650 at December 31.

A) Compute cost of goods manufactured.

B) Compute cost of goods Sold.

Materials used in product $128,120 Advertising expense $53,230 Depreciation on plant 65,430 Property taxes on plant 23,280 Property taxes on store 8,160 Delivery expense 30,900 Labor costs of assembly-line workers 112,940 Sales commissions 40,290 Factory supplies used 30,370 Salaries paid to sales clerks 55,770

Explanation / Answer

Lopez Corporation All Amounts in $ Cost of Goods Manufactured Materials used in Product 128120 Labor Costs of Assembly-Line Workers 112940 Factory Supplies used 30370 Depreciation on Plant 65430 Property Taxes on Plant 23280 Total Manufacturing Costs 360140 Add : Opening Work-in-Process Inventory 14580 374720 Less : Closing Work-in-Process Inventory 17300 Cost of Goods Manufactured 357420 Cost of Goods Sold Cost of Goods Manufactured as above 357420 Advertising Expense 53230 Delivery Expense 30900 Sales Commissions 40290 Salaries paid to Sales Clerks 55770 Total Selling Costs 537610 Add : Opening Finished Goods Inventory 65900 603510 Less : Closing Finished Goods Inventory 47650 Cost of Goods Sold 555860

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