Question

Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $652,000 $ 82,000 $137,000 $102,000 $ 49,000 $208,000 $227,000 Inventories Raw materials Work in process Finished goods Beginning Ending $ 8,900 $10,300 $5,300 $20,600 $ 74,000 $25,500 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. 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: Total raw materials available Raw materials used in production Total manufacturing costs Cost of goods manufactured < Required 1 Required 2 >

Answer 1

1.

Schedule of Cost of Goods manufactured
Direct Materials
Raw Material, Beginning Inventory	$           8,900.00
Add: Purchases	$      1,37,000.00
Total Raw Material Available	$      1,45,900.00
Deduct : Raw Material in inventory, ending	$         10,300.00
Raw Material used in production		$      1,35,600.00
Direct Labor		$          82,000.00
Manufacturing Overhead applied to work In process		$      2,08,000.00
Total Manufacturing Costs		$      4,25,600.00
Add: Beginning Work in Process Inventory		$            5,300.00
		$      4,30,900.00
Deduct: Ending Work in Process Inventory		$          20,600.00
Cost of Goods Manufactured		$      4,10,300.00

2.

Schedule of Cost of Goods Sold
Finished Goods Inventory, Beginning		$          74,000.00
Add: Cost of Goods Manufactured		$      4,10,300.00
Cost of Goods Available for sale		$      4,84,300.00
Deduct : Finished Goods Inventory, Ending		$          25,500.00
Unadjusted Cost of goods sold		$      4,58,800.00
Underapplied (Overapplied) Overhead		$          19,000.00
Adjusted Cost of Goods Sold		$      4,77,800.00

3.

Income Statement
Sales Revenue	$      6,52,000.00
Cost of Goods Sold	$      4,77,800.00
Gross Profit	$      1,74,200.00
Selling Expenses	$      1,02,000.00
Administrative expenses	$         49,000.00
Total Operating Expenses	$      1,51,000.00
Net Operating Income	$         23,200.00