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 $524,000 $ 70,000 $118,000 $140,000 $ 63,000 $ 90,000 $ 80,000 Inventories Raw materials Work in process Finished goods Beginning $ 7,000 $ $ 10,000 $ $ 20,000 $ Ending 15,000 5,000 35,000 Required: 11. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. $ 20,000 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 35,000 (10,000)

Answer 1

7000 Answers Schedule of Cost of Goods Manuacturing Direct Material Raw Mateiral Invenotry, Beginning ADD: Purchase of Raw Material 118000 Total raw Material Available 125000 LESS: Raw Mateiral Invenotry,Ending 15000 Raw material Used in Prodcution Direct Labor Manufacturing overheads Applied Total Manufacturing cost Beginning Work in Process 110000 70000 90000 270000 10000 280000 5000 275000 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 20000 275000 295000 35000 260000 -10000 250000

524000 250000 274000 Income Statement Sales Cost of Goods Sold Gross Margin Selling and Administrstive Expenes Selling Expenses Administrative Expenses Net Oprating Income 140000 63000 203000 71000