Craig Corporation incurred the following costs while manufacturing its product.

Question

Craig Corporation incurred the following costs while manufacturing its product.   

  Work-in-process inventory was $13,470 at January 1 and $12,300 at December 31. Finished goods inventory was $62,910 at January 1 and $57,180 at December 31.  

Instructions

(a) Compute cost of goods manufactured.
(b) Compute cost of goods sold.   

Materials used in product $105,150 Advertising expense $43,520 Depreciation on plant 61,850 Property taxes on plant 18,190 Property taxes on store 7,581 Delivery expense 21,470 Labor costs of assembly-line workers 105,720 Sales commissions 32,130 Factory supplies used 24,430 Salaries paid to sales clerks 47,100

Explanation / Answer

1. cost of goods manufactured materials used in product 105,150 labor costs of assembly-line workers 105,720 manufacturing overhead depreciation on plant 61,850 factory suppies used 24,430 property taxes on plant 18,190 manufacturing overhead 104,470 manufacturing costs incurred 315,340 plus beginning wip 13,470 costs to account for 328,810 less ending wip 12,300 cost of goods mnaufactured 316,510 2. cost of goods sold beginning finished inventory 62,910 plus cost of goods manufactured 316,510 cost of goods available fo sale 379420 less ending finished goods inventory 57,180 cost of goods sold 322240

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