SECTION A: SHORT PROBLEMS

1. Expert Manufacturing reported the following:

Revenue $460,000

Beginning inventory of direct materials, January 1, 2019 30,000

Purchases of direct materials 15,800

Ending inventory of direct materials, December 31, 2019 16,000

Direct manufacturing labor 26,000

Indirect manufacturing costs 42,000

Beginning inventory of finished goods, January 1, 2019 45,000

Cost of goods manufactured 97,800 Ending inventory of finished goods, December 31, 2019 41,000

Operating costs 158,000

Required: What is Expert's net profit?