Question

The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 659,000 $ 81,000 $ 138,000 $ 102,000 $ 44,000 $ 208,000 $ 228,000 Inventories Raw materials Work in process Finished goods Beginning $ 8,500 $ 5,500 $ 71,000 Ending $ 10,400 $ 20,900 $ 26,000 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 is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

Answer 1

Answers Schedule of Cost of Goods Manuacturing Direct Material Raw Mateiral Invenotry , Beginning 8500 ADD: Purchase of Raw Material 138000 Total raw Material Available 146500 LESS: Raw Mateiral Invenotry ,Ending 10400 Raw material Used in Prodcution Direct Labor Manufacturing overheads Applied Total Manufacturing cost ADD Beginning Work in Process 136100 81000 208000 425100 5500 4306001 20900 409700 LESS: Ending Work in Process Cost of Goods Manufactured

Cost of Goods Sold Finished Good Invenotry , Beginning ADD: Cost of Goods Manufactured Cost of Goods Available for Sale LESS: Finidhed goods Inventory, Ending Unadjusted Cost of Goods Sold ADD: Underapplied Overhead Adjusted cost of Goods Sold 71000 409700 480700 26000 454700 20000 474700

659000 4747001 184300 Income Statement Sales Cost of Goods Sold Gross Margin Selling and Administrstive Expenes Selling Expenses 102000 Administrative Expenses 44000 Net Oprating Income 146000 38300