Cost of Goods Manufactured and Cost of Good Sold (20pts.)

Zara Manufacturing Corp. produces jackets. For the year just ended, Zara produced units with the following costs:

direct materials . $ 30,000

direct labor 45,000

overhead 20,000

research and development expense $ 20,500

selling expenses .17,750

administrative expenses . 22,200

During the year, the company sold 18,800 units for $25 each (Revenue of $470,000). Beginning finished goods inventory consisted of 1,200 units with a total cost of $5,700. There were no beginning inventory or ending inventories of work in process.

Required:

Prepare schedule for Cost of goods manufactured.

Prepare schedule for Cost of goods sold.