Question

E2-9 (Algo) Calculating Cost of Jobs [LO 2-4, 2-6) 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 $24,000 of indirect material) 25,900 37,300 112,100 277,100 24,200 41,150 122,400 306,000 Required: 1. Compute direct material used. 2. Compute applied overhead if the company applies overhead at a rate of 0.93 (93%) of direct labor cost. 3. Compute total manufacturing cost. 4. Compute cost of goods manufactured. 5. Compute cost of goods sold. 1. Direct Material Used 2. Applied Overhead 3. Total Manufacturing Cost Cost of Goods Manufactured 5. Cost of Goods Sold

Answer 1

1)
Particulars	Amount (in $ )
Beginning Raw materials, 1/1/18	$ 37,300
Add: Material purchases	$ 306,000
Raw material available for use	$ 343,300
Less: Ending Raw materials,12/31/18	($ 41,150)
Less: Indirect materials	( $ 24,000)
Direct materials used	$ 278,150
2)
Applied Overhead         = $ 277,100 x 93%	$ 257,703
3)
Particulars	Amount (in $ )
Direct materials used	$ 278,150
Direct labor	$ 277,100
Applied Manufacturing Overhead ( $ 277,100 x 93% )	$ 257,703
Total Manufacturing costs	$ 812,953
4)
Particulars	Amount (in $ )
Beginning work in process, 1/1/18	$ 122,100
Add: Total Manufacturing costs	$ 812,953
Less: Ending work in process, 12/31/18	($ 122,400)
Cost of goods manufactured	$ 812,653
5)
Particulars	Amount (in $ )
Beginning Finished goods, 1/1/18	$ 25,900
Add: Cost of goods manufactured	$ 812,653
Less: Ending Finished goods, 12/31/18	($ 24,200)
Cost of goods sold	$ 814,353