Exercise 19-8 Craig Corporation incurred the following costs while manufacturing its product. Materials used in product $104,750 Advertising expense $46,190 Depreciation on plant 64,810 Property taxes on plant 19,400 Property taxes on store 7,680 Delivery expense 20,710 Labor costs of assembly-line workers 105,820 Sales commissions 37,440 Factory supplies used 21,730 Salaries paid to sales clerks 48,930 Work In process Inventory was $13,590 at January 1 and $11,560 at December 31. Finished goods inventory was $58,610 at January 1 and $56,860 at December 31. (a) Compute cost of goods manufactured. Cost of goods manufactured $ (b) Compute cost of goods sold. Cost of goods sold $ Solution a. Compute cost of goods manufactured: b. Compute cost of goods sold: .

1. Exercise 19-8 Craig Corporation incurred the following costs while manufacturing its product.
Materials used in product $104,750 Advertising expense $46,190 Depreciation on plant 64,810
Property taxes on plant 19,400 Property taxes on store 7,680 Delivery expense 20,710 Labor
costs of assembly-line workers 105,820 Sales commissions 37,440 Factory supplies used 21,730
Salaries paid to sales clerks 48,930 Work In process Inventory was $13,590 at January 1 and
$11,560 at December 31. Finished goods inventory was $58,610 at January 1 and $56,860 at
December 31. (a) Compute cost of goods manufactured. Cost of goods manufactured $ (b)
Compute cost of goods sold. Cost of goods sold $
Solution
a. Compute cost of goods manufactured:
b. Compute cost of goods sold:
Cost of goods manufactured
Particulars Amount Amount
Direct Material Used $104,750
Direct Labor $105,820
Manufacturing overheads
Depreciation on plant $64,810
Factory supplies used $21,730
Property taxes on plant $19,400 $105,940
Total Manufactuirng costs $316,510
Work in process 1/1/20XX $13,590
Total cost of work in process $330,100
Work in process 31/12/20XX $11,560
Cost of goods manufactured $318,540