Reference no: EM132671465

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: Demonstrate cost of goods manufactured.