Exercise 19-08 a-b Oriole Corporation incurred the following costs while manufacturing its product.

Materials used in product $126,400
Advertising expense $54,100
Depreciation on plant 61,000
Property taxes on plant 21,800
Property taxes on store 7,650
Delivery expense 27,300
Labor costs of assembly-line workers 113,500
Sales commissions 38,400
Factory supplies used 29,300
Salaries paid to sales clerks 55,400

Work in process inventory was $14,600 at January 1 and $16,700 at December 31. Finished goods inventory was $70,900 at January 1 and $49,100 at December 31.

Compute cost of goods sold.

$371,700

Explanation:

The computation of the cost of goods sold is shown below:

Cost of goods manufactured  = Direct materials used + Direct labor cost + Manufacturing overhead cost + beginning work in process inventory - ending work in process inventory

where,

Manufacturing overhead cost is

= Depreciation on plant + Factory supplies used + Property tax on plant

= $61,000 + $29,300 + $21,800

= $112,100

The cost of goods manufactured is

= $126,400 + $113,500 + $112,100 + $14,600 - $16,700

= $349,900

Now the cost of goods sold is

= Beginning finished goods + Cost of goods manufactured - ending finished goods

= $70,900 + $349,900 - $49,100

= $371,700

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urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total