The Following Cost and Inventory Data Were Taken from the Records

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.