Reference no: EM132717779

James Corporation incurred the following costs while manufacturing its product.

Materials used in product $135,000                          Advertising expense $45,000

Depreciation on plant 60,000                                 Property taxes on plant 19,000

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 25,000                                        Salaries paid to sales clerks 50,000

Work-in-process inventory was $17,500 at January 1 and $14,000 at December 31. Finished goods inventory was $60,500 at January 1 and $42,000 at December 31.

Instructions

Problem 1: Compute cost of goods manufactured.

Problem 2: Compute cost of goods sold.