E2-10 (Algo) Preparing Cost of Goods Manufactured and Income Statement [LO 2-6]

Manufacturing costs for Davenport Company during 2018 were as follows:

Beginning Finished Goods, 1/1/18	$	26,100
Beginning Raw Materials, 1/1/18		37,500
Beginning Work in Process, 1/1/18		112,300
Direct Labor for 2018	$	277,300
Ending Finished Goods, 12/31/18		24,400
Ending Raw Materials, 12/31/18		41,250
Ending Work in Process, 12/31/18		122,600
Material Purchases for 2018		306,200
(including $25,000 of indirect material)

Note: The pre-determined overhead rate is 0.95 (95%) of direct labor cost.

Required:

1. Prepare a Cost of Goods Manufactured report.

2. Prepare a Partial Income Statement if sales revenue was $1,450,000 and operating expenses were $310,000 for 2018.