Question

Manufacturing costs for Davenport Company during 2018 were as follows: $ 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 $18,000 of indirect material) 24,700 36,100 110,900 275,900 23,000 40,550 121,200 304,800 Required: 1. Compute direct material used. 2. Compute applied overhead if the company applies overhead at a rate of 0.81 (81%) of direct labor co 3. Compute total manufacturing cost. 4. Compute cost of goods manufactured. 5. Compute cost of goods sold. 1. Dired 2. 3. 4. 5. Direct Material Used Applied Overhead Total Manufacturing Cost Cost of Goods Manufactured Cost of Goods Sold I

Answer 1

Solution

Direct Material Used		$ 282,350
Manufacturing overheads Applied		$ 223,479
Total manufacturing Costs		$ 781,729
Cost of Goods Manufactured		$ 771,429
Cost of goods sold		$ 773,129

Working

Schedule of Cost of Goods Manufactured and sold
Direct Material
Raw material Inventory Beginning	$ 36,100
Raw material Purchased	$ 286,800
Raw material available for use	$ 322,900
Less: Raw material Inventory Ending	$ 40,550
Direct Material Used		$ 282,350
Direct labor		$ 275,900
Manufacturing overheads Applied		$ 223,479
Total manufacturing Cost During the month		$ 781,729
Add: Work in process Beginning		$ 110,900
Total Work in Process		$ 892,629
Less: Work in progress Ending		$ 121,200
Cost of Goods Manufactured		$ 771,429
Add: Beginning finished goods inventory		$ 24,700
Goods available for sale		$ 796,129
Less: Ending Finished goods Inventory		$ 23,000
Cost of goods sold		$ 773,129