The following information was taken from the accounting records of Dunbar Mifflin Company

in 2018.

Beginning of 2018 Ending of 2018

Direct materials inventory 135,000 83,000

Work-in-process inventory 185,000 154,000

Finished-goods inventory 255,000 216,000

Purchases of direct materials 270,000

Direct manufacturing labor 225,000

Indirect manufacturing labor 103,000

Plant insurance 11,000

Depreciation-plant, building, and equipment 48,000

Plant utilities 29,500

Repairs and maintenance-plant 13,500

Equipment leasing costs 66,800

Marketing, distribution, and customer-service costs 129,500

General and administrative costs 72,500

Required:

1. prepare schedule of cost of goods manufactured.

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 schedule for the cost of goods manufactured for 2018.

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