Problem: Coldplay Corporation incurred the following costs while manufacturing its product.
Materials used in product $100,000
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 $55,600 at December 31.
Instructions:
(a) Compute cost of goods manufactured.
(b) Compute cost of goods sold.