Question #2:

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) Prepare a formal schedule of the Cost of Goods Manufactured.

(b) Compute cost of goods sold.