Question

The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: $ 81,000 Costs incurred: Direct labour cost Purchases of raw materials Indirect labour Maintenance, factory equipment Advertising expense Insurance, factory equipment Sales salaries Rent, factory facilities Supplies Depreciation, office equipment Depreciation, factory equipment A Beginning of the Year End of the Year Inventories: Raw materials Work in process Finished goods $ 9,100 11,400 24,350 $ 17,600 6,250 39,200 Required: 1. Prepare a schedule of cost of goods manufactured in good form. MASON COMPANY Schedule of Cost of Goods Manufactured Direct materials:

Answer 1

MASON COMPANY Schedule of cost of goods Manufactured Direct materials: Raw material inventory, beginning 9100 Add: Purchases of raw materials 131000 Raw materials available for use 140100 Deduct: Raw material inventory, ending 17600 Raw material used in production Direct labor Manufacturing overhead: Indirect labor 35500 Maintenance, factory equipment 7100 Insurance factory equipment 1010 Rent, factory facilities 29500 Depreciation, factory equipment 26500 122500 81000 Total overhead costs Total manufacturing costs Add: Work in process beginning 99610 303110 11400 314510 6250 308260 Deduct: workin process ending Cost of goods manufactured

MASON COMPANY Income Statement (Partial) For the Year Just Completed Beginning Finished goods Add: Cost of goods manufactured Goods available for sale Less: Ending Finished goods Cost of goods sold 24350 308260 332610 39200 293410