Answer :
Answer:
Cost of goods manufactured is $323,500
Cost of goods sold is $337,900
Explanation:
Given:
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 workers = $110,000
Sales commissions = $35,000
Factory supplies used = $23,000
Salaries paid to sales 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.
(a) Cost of goods manufactured = Materials used in product + Depreciation on plant + Labor costs of assembly-line workers + Property taxes on plant + Factory supplies used + Beginning work in process - ending work in process
= $120,000 + $60,000 + $110,000 + $14,000 + $23,000 + $12,000 - $15,500
= $323,500
(b) Cost of goods sold = Cost of goods manufactured + opening finished goods inventory - Closing finished goods inventory
= $323,500 + $60,000 - $45,600
= $337,900
The Cost of goods manufactured should be considered as the $323,500
And, the Cost of goods sold is $337,900
Calculation of the Cost of goods manufactured and cost of goods sold:
The following formula should be used:
(a) Cost of goods manufactured = Materials used + Depreciation on plant + Labor costs + Property taxes + Factory supplies used + Opening work in process - closing work in process
= $120,000 + $60,000 + $110,000 + $14,000 + $23,000 + $12,000 - $15,500
= $323,500
Now
(b) Cost of goods sold = Cost of goods manufactured + beginning finished goods inventory - ending finished goods inventory
= $323,500 + $60,000 - $45,600
= $337,900
Hence,
The Cost of goods manufactured should be considered as the $323,500
And, the Cost of goods sold is $337,900
learn more about inventory here: https://brainly.com/question/22654785