The following data from the just completed year are taken from the accounting records of Mason Company:

Sales	$	524,000
Direct labor cost	$	70,000
Raw material purchases	$	118,000
Selling expenses	$	140,000
Administrative expenses	$	63,000
Manufacturing overhead applied to work in process	$	90,000
Actual manufacturing overhead costs	$	80,000

Inventories	Beginning		Ending
Raw materials	$	7,000	$	15,000
Work in process	$	10,000	$	5,000
Finished goods	$	20,000	$	35,000

Required:

1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

3. Prepare an income statement.

The following data from the just completed year are taken from the accounting records of Mason Company:

Sales	$	524,000
Direct labor cost	$	70,000
Raw material purchases	$	118,000
Selling expenses	$	140,000
Administrative expenses	$	63,000
Manufacturing overhead applied to work in process	$	90,000
Actual manufacturing overhead costs	$	80,000

Inventories	Beginning		Ending
Raw materials	$	7,000	$	15,000
Work in process	$	10,000	$	5,000
Finished goods	$	20,000	$	35,000

Required:

1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

3. Prepare an income statement.

Answer rating: 100% (QA)

Part 1 Schedule of Cost of Goods Manufactured Beginning raw materials inventory 7000 Add Raw materia... View the full answer