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.
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.
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 | |||
| 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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Step 1 Introduction
Cost of goods manufactured includes the cost of raw materials and production.
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