anufacturing costs for Davenport Company during 2018 were asfollows:
| | |
| Beginning Finished Goods, 1/1/18 | $ | 25,100 |
| Beginning Raw Materials, 1/1/18 | | 36,500 |
| Beginning Work in Process, 1/1/18 | | 111,300 |
| Direct Labor for 2018 | $ | 276,300 |
| Ending Finished Goods, 12/31/18 | | 23,400 |
| Ending Raw Materials, 12/31/18 | | 40,750 |
| Ending Work in Process, 12/31/18 | | 121,600 |
| Material Purchases for 2018 | | 305,200 |
| (including $20,000 of indirect material) | | |
|
Note: The pre-determined overhead rate is 0.85 (85%) of directlabor cost.
Required:
1. Prepare a Cost of Goods Manufacturedreport.
2. Prepare a Partial Income Statement if salesrevenue was $1,350,000 and operating expenses were $260,000 for2018.
