Gunsmoke Manufacturing Company Purchased $44,000 of Direct Materials and Incurred

Essay

Gunsmoke Manufacturing Company purchased $44,000 of direct materials and incurred $7,600 of direct labor costs during the year. Indirect labor amounted to $3,000 while indirect materials totaled $5,200. Factory depreciation totaled $18,800. Selling expenses were $15,400. The only inventory was $5,500 of finished goods at year end.
Required:
a. Compute the cost of goods manufactured.
b. Compute the cost of goods sold.