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

Sales $ $654,000$

Direct labor cost $ $89,000$

Raw material purchases $ $133,000$

Selling expenses $ $109,000$

Administrative expenses $ $47,000$

Manufacturing overhead applied to work in process $ $222,000$

Actual manufacturing overhead costs $ $209,000$

Inventories Beginning Ending

Raw materials $ $8,600$ $ $10,900$

Work in process $ $5,100$ $ $20,300$

Finished goods $ $80,000$ $ $25,600$

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)

1 Schedule of Cost of Goods Manufactured Direct materials used Beginning raw materials inventory 860... View the full answer