Question
A Corporation incurred the following costs while manufacturing its product. Materials used in product $ 90,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes
A Corporation incurred the following costs while manufacturing its product.
Materials used in product $ 90,000 Advertising expense $45,000
Depreciation on plant 60,000 Property taxes on plant 19,000
Property taxes on store 7,500 Delivery expense 21,000
Labor costs of assembly-line workers 110,000 Sales commissions 35,000
Factory supplies used 23,000 Salaries paid to sales clerks 50,000
Work-in-process inventory was $22,000 at January 1 and $15,500 at December 31. Finished goods inventory was $65,000 at January 1 and $55,600 at December 31.
Instructions
(a) Create a formal schedule of the Cost of Goods Manufactured.
(b) Compute cost of goods sold.
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