CH 3, 2

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

Sales	$ 652,000
Direct labor cost	$ 88,000
Raw material purchases	$ 138,000
Selling expenses	$ 101,000
Administrative expenses	$ 45,000
Manufacturing overhead applied to work in process	$ 221,000
Actual manufacturing overhead costs	$ 207,000

Inventories	Beginning	Ending
Raw materials	$ 8,100	$ 10,800
Work in process	$ 5,100	$ 20,200
Finished goods	$ 77,000	$ 25,800

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.

Please fill out all the blank space( blue box) and fix any error too.

A

2B

2C

Thank you

Required 1 Required 2 Required 3 Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were dire Mason Company Schedule of Cost of Goods Manufactured Beginning work in process inventory Direct materials: Beginning raw materials inventory $ 8,100 Add: Purchases of raw materials 138,000 Total raw materials available 146,100 Less: Ending raw materials inventory Direct materials used in production Direct labor Manufacturing overhead 88,000 221,000 309,000 309,000 Total manufacturing costs added to production Total manufacturing costs to account for Less: Ending work in process inventory Cost of goods manufactured Required 1 Required 2 Required 3 Prepare a schedule of cost of goods sold. Assume that the company's undera of Goods Sold. $ 77,000 Mason Company Schedule of Cost of Goods Sold Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Less: Overapplied overhead Adjusted cost of goods sold Required 1 Required 2 Required 3 Prepare an income statement. Mason Company Income Statement Sales $ 652,000 652,000 Cost of goods sold Gross margin Selling and administrative expenses: Administrative expense Selling expenses Accounts payable Net operating income 0 $ 652,000