Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $129,100 Advertising expense $53,200 Depreciation on plant 64,600 Property taxes on plant 16,000 Property taxes on store 8,160 Delivery expense 24,300 Labor costs of assembly-line workers 111,300 Sales commissions 40,100 Factory supplies used 28,700 Salaries paid to sales clerks 57,100Work in process inventory was $14,000 at January 1 and $16,700 at December 31.Finished goods inventory was $61,800 at January 1 and $49,800 at December 31.Required:Compute cost of goods manufactured.

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andromache andromache · Answer 1 · 2020-09-02T02:16:09+02:00

Answer:

$339,160

Explanation:

The computation of the cost of goods manufactured is shown below:

Cost of goods manufactured is

= Material used in product + Labor costs of assembly line workers + Factory overheads + Opening Work in process – Closing Work in process

where,

Factory overheads is

= Depreciation on plant+ Property taxes on plant+ Factory supplies used

= $64,600 + $8,160 + $28,700

= $101,460

Now put all other values together with this in the above formula

So,

= $129,100 + $111,300 + $101,460 + $14,000 - $16,700

= $339,160