Manufacturing costs for Davenport Company during 2018 were as follows: Beginning Finished Goods, 1/1/18 ................................. $25,600 Beginning
Question:
Manufacturing costs for Davenport Company during 2018 were as follows:
Beginning Finished Goods, 1/1/18 ................................. $25,600
Beginning Raw Materials, 1/1/18 ...................................... 37,000
Beginning Work in Process, 1/1/18 ................................ 111,800
Direct Labor for 2018 .................................................... $276,800
Ending Finished Goods, 12/31/18 ................................... 23,900
Ending Raw Materials, 12/31/18 ..................................... 41,000
Ending Work in Process, 12/31/18 ................................ 122,100
Material Purchases for 2018 (including $15,000 of indirect material) 305,700
Required:
1. Compute direct material used.
2. Compute applied overhead if the company applies overhead at a rate of 0.90 (90%) of direct labor cost.
3. Compute total manufacturing cost.
4. Compute the cost of goods manufactured.
5. Compute the cost of goods sold.
Managerial Accounting
ISBN: 978-1260413984
4th edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips