How do i compute cost of goods manufactured for this one? Please explain me step by step as i am getting confused on the finished good inventory here.Materials used in product $123,900 Advertising expense $49,200Depreciation on plant 65,100 Property taxes on plant 15,000Property taxes on store 7,290 Delivery expense 24,600Labor costs of assembly-line workers 119,700 Sales commissions 43,100Factory supplies used 31,700 Salaries paid to sales clerks 54,100Work in process inventory was $12,000 at January 1 and $16,600 at December 31. Finished goods inventory was $68,500 at January 1 and $47,900 at December 31.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How do i compute cost of goods manufactured for this one? Please explain me step by step as i am getting confused on the finished good inventory here.

Materials used in product	$123,900	Advertising expense	$49,200
Depreciation on plant	65,100	Property taxes on plant	15,000
Property taxes on store	7,290	Delivery expense	24,600
Labor costs of assembly-line workers	119,700	Sales commissions	43,100
Factory supplies used	31,700	Salaries paid to sales clerks	54,100

Work in process inventory was $12,000 at January 1 and $16,600 at December 31. Finished goods inventory was $68,500 at January 1 and $47,900 at December 31.

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Cost of goods manufactured includes the cost of raw materials and production.

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