Question

Chapter 3 HW Help Save & A The following data from the just completed year are taken from the accounting records of Mason Company $ 651.000 $ 140,000 $ 100,000 points Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 209,000 Skipped Inventories Baterials Work in process Finished goods Beginning $ 8.500 $ 6.000 $ 77,000 Ending 10.500 20.700 $25,400 19 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 References 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 Mason Company Schedule of Cost of Goods Manufactured Direct materials:

Answer 1

Solution 1:

Mason Company
Schedule of cost of goods manufactured
Direct Material:
Raw Material, Beginning	$8,500.00
Add: Purchase of Raw Material	$1,40,000.00
Total Raw material available	$1,48,500.00
Less: Raw Material, Ending	$10,600.00
Raw material used in production		$1,37,900.00
Direct Labor cost		$83,000.00
Applied Manufacturing Overhead		$2,09,000.00
Total Manufacturing Costs		$4,29,900.00
Add: Work in Process, Beginning		$6,000.00
Subtotal		$4,35,900.00
Less: Work in Process, Ending		$20,700.00
Cost of goods manufactured		$4,15,200.00

SOlution 2:

Mason Company
Schedule of cost of goods manufactured
Cost of goods manufactured	$4,15,200.00
Add: Finished Goods, Beginning	$77,000.00
Total Goods available for sale	$4,92,200.00
Less: Finished Goods, Ending	$25,400.00
Unadjusted Cost of goods Sold	$4,66,800.00
Add: Under -applied Overhead ($220000-$209000)	$11,000.00
Adjusted Cost of goods sold	$4,77,800.00

Solution 3:

Mason Company
Income Statement
Sales	$6,51,000.00
Less: Cost of goods sold	$4,77,800.00
Gross Profit	$1,73,200.00
Less: Expenses:
Selling Expenses	$1,00,000.00
Administrative expenses	$44,000.00
Net Income	$29,200.00