Reference no: EM132605377

Forster Corporation incurred the following costs while manufacturing its product.

Materials used in product $ 125,000          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 23,000                          Salaries paid to sales clerks 50,000

Work-in-process inventory was $27,000 at January 1 and $15,500 at December 31. Finished goods inventory was $65,000 at January 1 and $50,600 at December 31.

Required:

Question (a) Compute cost of goods manufactured.

Question (b) Compute cost of goods sold.