Question 1.2 (Total: 38 marks)

Following are the account balances for the DC Company in 2018:

Beginning of 2018 Ending of 2018

Direct materials inventory 26,500 27,000

Work-in-process inventory 30,500 28,400

Finished-goods inventory 16,500 22,100

Purchases of direct materials 79,000

Direct manufacturing labor 24,500

Indirect manufacturing labor 18,600

Plant insurance 7,900

Depreciation-plant, building, and equipment 11,800

Repairs and maintenance-plant 3,500

Marketing, distribution, and customer-service costs 87,900

General and administrative costs 26,500

Required:

1. Prepare a schedule for the cost of goods manufactured for 2018.

1. Revenues for 2018 was $425,000. Prepare the income statement for 2018.