Manufacturing costs for Davenport Company during 2018 were as follows: Beginning Finished Goods, 1/1/18 $ 25,800 Beginning Raw Materials, 1/1/18 37,200 Beginning Work in Process, 1/1/18 112,000 Direct Labor for 2018 277,000 Ending Finished Goods, 12/31/18 24,100 Ending Raw Materials, 12/31/18 41,100 Ending Work in Process, 12/31/18 122,300 Material Purchases for 2018 305,900 (including $23,500 of indirect material)

Required:

1. Compute direct material used.

2. Compute applied overhead if the company applies overhead at a rate of 0.92 (92%) of direct labor cost.

3. Compute total manufacturing cost.

4. Compute cost of goods manufactured.

5. Compute cost of goods sold.

Question

contestada

Respuesta :

letmeanswer letmeanswer · Answer 1 · 2020-03-11T13:37:32+01:00

1.Direct Material Used $278,300

2.Applied Overhead $254,840

3.Total Manufacturing Cost $810,140

4.Cost of Goods Manufactured $1,044,440

5.Cost of Goods Sold $1,022,920

Explanation:

1. Direct Material Used = $37,200 + 305,900 − 23,500 − 41,100

= $278,300

2. Applied Overhead = $277,000 × 0.92

= $254,840

3. Total Manufacturing Cost = $278,300 + 277,000 + $254,840

= $810,140

4.Cost of Goods Manufactured = $112,000 + 810,140 − 122,300

= $1,044,440

5.Cost of Goods Sold = $25,800 + 1,044,440 − 24,100

= $1,022,920