accounting tools for business decision making e14 8 460071

Lopez Corporation incurred the following costs while manufacturing its product.

Material used in a product – $120,000

Depreciation on plant ‘ 60,000

Dispatcher’s salary -5,000

Property taxes on store -7,500

Labor costs of assembly-line workers- 110,000

Factory supplies- 23,000

Advertising expense- 45,000

Property taxes on plant- 14,000

Delivery expense ‘ 21,000

Sales commissions ‘ 35,000

Salaries paid to sales clerks ‘ 50,000

Work in process inventory was $12,000 at January 1 and $15,000 at December 31. Finished goods inventory was $60,000 at January 1 and $45,600 at December 31.

(A) compute cost of goods manufactured

(b) compute cost of goods sold.