Managerial Accounting

E15-8 Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 14,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line Sales commissions 35,000 workers 110,000 Salaries paid to sales Factory supplies used 23,000 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. 12,000 LOPEZ COMPANY Cost of Goods Manufactured Schedule For the Year Ended December 31, 2017 Work in process, Jan 1 Direct Materials Used Direct Labor Manufacturing (Factory) Overhead: Depreciation on plant Factory supplies used Property taxes on plant Total (Factory) Overhead (total the 3 costs in column one) Total Manufacturing Costs (total the three items in middle column) Total Cost of Work-In-Process Less: Ending Work-In-Process FYI: Given in the problem "Ending" is the "year end" amount (DEC 31) Cost of Goods Manufactured 323,500 (b) (below are the items you need for CGS ... BUT they all are just NOT added together). Finished goods Cost of goods manufactured Cost of goods available for sale (add the 2 items above this for the total) Finished goods Cost of goods sold