Cornelius Company produces women's clothing. During the year, the company incurred the following costs:

Factory rent...............................................380000

Direct labor............................................... 300000

Utilities-factory........................................ 38000

Purchases of direct materials........................... 555000

Indirect materials........................................66000

Indirect labor.............................................60000

Inventories for the year were as follows:

Required
1. Prepare a statement of cost of goods manufactured.
2. Calculate cost of goods sold.

Transcribed Image Text:

Direct materials Work-in-process Finished goods January 1 25,000 45,000 35,000 December 31 $40,000 40,000 75,000