Question

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

Costs incurred:
Direct labor cost	$	80,000
Purchases of raw materials	$	137,000
Manufacturing overhead	$	204,000
Advertising expense	$	49,000
Sales salaries	$	104,000
Depreciation, office equipment	$	225,000

   

	Beginning of the Year			End of the Year
Inventories:
Raw materials	$	8,200		$	10,300
Work in process	$	5,300		$	20,300
Finished goods	$	72,000		$	25,300

Required:

1.	Prepare a schedule of cost of goods manufactured.

      

MASON COMPANY Schedule of Cost of Goods Manufactured Direct materials: Raw materials available for use Raw materials used in production Total manufacturing costs Cost of goods manufactured $ 0

Answer 1

1)

MASON COMPANY
Schedule of Cost of Goods Manufactured
Direct materials:
Beginning of raw materials	$8,200
Add: Purchase of raw materials	$137,000
Raw materials available for use	$145,200
Less: Ending of raw materials	($10,300)
Raw materials used in production		$134,900
Direct labor cost		$80,000
Manufacturing overheads		$204,000
Total manufacturing costs		$418,900
Add: Beginning work-in process inventory		$5,300
		$424,200
Less: Ending work-in process inventory		($20,300)
Cost of Goods Manufactured		$403,900