Glavine Corporation incurred the following costs while manufacturing its product. Materials used in product $125,000 Depreciation on plant 60,000 Property taxes on store 7,500 Labor costs of assembly-line workers 110,000 Factory supplies used 23,000 Advertising expense 45,000 Property taxes on plant 19,000 Delivery expense 21,000 Sales commissions 35,000 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.(a) Compute cost of goods manufactured.

(b) Compute cost of goods sold.

Cost of Goods Sold   $ 362,500

Explanation:

Glavine Corporation

Cost Of Goods Sold Statement

Materials used $125,000

Labor costs of assembly-line workers 110,000  

Factory Overhead  $ 102,000

Factory supplies used 23,000

Depreciation on plant 60,000

Property taxes on plant 19,000

Total Manufacturing Costs  $ 337,000

Add Work-in-process inventory was $27,000 at January 1

Cost of Goods Available for Manufacture $ 364,000

Less Work-in-process inventory   $15,500 at December 31.

Cost of Goods Manufactured $ 348,500

Add Finished goods inventory was $65,000 at January 1

Cost of Goods Available for Sale  $ 413,500

Less Finished goods inventory $50,600 at December 31

Cost of Goods Sold   $ 362,500

These all expenses are related to Sales and included in the income statement. They are not related to the manufacturing of the product.

Advertising expense 45,000

Property taxes on store 7,500

It is considered to be the Sales Store

Delivery expense 21,000

Sales commissions 35,000

Salaries paid to sales clerks 50,000

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know