The Following Cost and Inventory Data Were Taken from the Records

question 39

Essay

The following cost and inventory data were taken from the records of the Flagstaff Company for the year:
$\begin{array}{lr}\text { Costs incurred:}\\\text { Depreciation, factory equipment}&\$ 30,000\\\text {Depreciation, office equipment}&7,000\\\text {Supplies, factory}&1,500\\\text {Maintenance, factory equipment}&20,000\\\text {Utilities, factory}&8,000\\\text { Sales commissions } & 30,000 \\\text { Indirect labor } & 54,500 \\\text { Rent, factory building } & 70,000 \\\text { Purchases of direct materials (net) } & 124,000 \\\text { Direct labor } & 80,000 \\\text { Advertising expense } & 90,000\end{array}$
Inventories:
$$\begin{array} { l r r } & \text { January } 1 & \text { December } 31 \\\text { Direct materials } & \$ 9,000 & \$ 11,000 \\\text { Work in process } & 6,000 & 21,000 \\\text { Finished goods } & 69,000 & 24,000\end{array}$$
Required:
(a) Compute the cost of goods manufactured.
(b) Compute the cost of goods sold.

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Definitions:

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