Question 2:(38 marks total)

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)what isschedule for the cost of goods manufactured for 2018. (16 marks)

2)Revenues for 2018 was $425,000. Prepare the income statement for 2018. (22 marks)