Manufacturing costs for Davenport Company during 2018 were as follows: $ 25,300 36,700 111,500 276,500 Beginning Finished Goods, January 1 Beginning Raw Materials, January 1 Beginning Work in Process, January 11 Direct Labor for the current year Ending Finished Goods, December 31 Ending Raw Materials, December 31 Ending Work in Process, December 31 Material Purchases for the current year(including $21,000 of indirect material) 305,400 Note: The pre-determined overhead rate is 0.87 (87%) of direct labor cost. 23,600 40,850 121,800 Required: 1. Prepare a Cost of Goods Manufactured report. 2. Prepare a Partial Income Statement if sales revenue was $1,370,000 and operating expenses were $270,000 for the current year.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![E2-10 (Algo) Preparing Cost of Goods Manufactured and Income Statement [LO 2-6]
Manufacturing costs for Davenport Company during 2018 were as follows:
$25,300
36,700
111,500
276,500
Beginning Finished Goods, January 1
Beginning Raw Materials, January 1
Beginning Work in Process, January
Direct Labor for the current year
Ending Finished Goods, December 31
Ending Raw Materials, December 31
Ending Work in Process, December 31
Material Purchases for the current
year(including $21,000 of indirect
material)
305,400
Note: The pre-determined overhead rate is 0.87 (87%) of direct labor cost.
Required:
1. Prepare a Cost of Goods Manufactured report.
2. Prepare a Partial Income Statement if sales revenue was $1,370,000 and operating expenses were $270,000 for the current year.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
23,600
40,850
121,800
Prepare a Cost of Goods Manufactured report.
DAVENPORT COMPANY](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe9f99bc1-b177-45e1-a6f4-6be690697c34%2Fe7ebf9c7-d409-4c42-b164-73bb3dce5d4e%2Ftmpdden_processed.jpeg&w=3840&q=75)
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