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.
(a) Compute cost of goods manufactured.
(b) Compute cost of goods sold.
Provides steps necessary to computer the cost of goods manufactured and the cost of goods sold.