Question

Manufacturing costs for Davenport Company during 2018 were as follows: $ 25,800 37,200 112,000 $277,000 24,100 41,100 122,300 305,900 Beginning Finished Goods, 1/1/18 Beginning Raw Materials, 1/1/18 Beginning Work in Process, 1/1/18 Direct Labor for 2018 Ending Finished Goods, 12/31/18 Ending Raw Materials, 12/31/18 Ending Work in Process, 12/31/18 Material Purchases for 2018 (including $23,500 of indirect material) Note: The pre-determined overhead rate is 0.92 (92%) of direct labor cost. Required: 1. Prepare a Cost of Goods Manufactured report. 2. Prepare a Partial Income Statement if sales revenue was $1,420,000 and operating expenses were $295,000 for 2018. X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a Cost of Goods Manufactured report. DAVENPORT COMPANY Cost of Goods Manufactured Report For the Year 2018 37,200 VIs Beginning Raw Materials Inventory 305,900 (264,800)X 41,100 (302,000) X 277,000 254,840 531,840X 112,000 122,300 10,300X Plus: Raw Material Purchases Less: Indirect Material Used Less: Ending Raw Materials Inventory Direct Materials Used in Production Direct Labor Applied Manufacturing Overhead Total Current Manufacturing Costs Plus: Beginning Work in Process Inventory Less: Ending Work in Process Inventory Cost of Goods Manufactured Required 1 Required 2 >

Answer 1

1) Cost of goods manufactured report

Beginning raw material	37200
Plus: Raw material purchase	305900
Less: Indirect material used	-23500
Less: Ending raw material inventory	-41100
Direct material used in production	278500
Direct labor	277000
Applied manufacturing overhead	254840
Total Current manufacturing cost	810340
Plus: Beginning work in process	112000
Less: Ending work in process	-122300
Cost of goods manufactured	800040

Income statement

Sales revenue		1420000
Less: Cost of goods sold
Beginning finished goods inventory	25800
Plus Cost of goods manufactured	800040
Cost of goods available for sale	825840
Less: Ending finished goods inventory	-24100
Cost of goods sold		801740
Gross profit		618260
Operating expenses		295000
Net income (loss)		323260