Question

The following data from the just completed year are taken from the accounting records of Mason Company: points Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 653,000 $ 87,000 $ 136,000 $ 102,000 $ 47,000 $ 203,000 $ 229,000 eBook Hint Print References Inventories Raw materials Work in process Finished goods Beginning $ 8,500 $ 5,300 $ 76,000 Ending $ 10,600 $ 20,400 $ 25,700 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 of cost of oods manufactured Assume all raw materials used in production were direct materials

Answer 1

Mason Company 8500 136000 Schedule Cost of Goods Manufactured Beginning raw materials inventory Add: Raw material purchases Less: Indirect materials Less: Ending raw materials inventory Direct Materials Used Direct Labor Manufacturing OH applied Total current manufacturing costs Add: Beginning WIP Inventory Less: Ending WIP Inventory Cost of Goods Manufactured -10600 133900 87000 203000 423900 5300 -20400 408800 Schedule of cost of goods sold Beginning FG Inventory Add: Cost of Goods Manufactured Cost of Goods available Less: Ending FG Inventory Unadjusted COGS Add: Underapplied MOH/Less: Overapplied MOH Adjusted COGS 76000 408800 484800 -25700 459100 26000 485100 Income Statement Sales Revenue COGS Gross Profit Selling Expenses Administrative Expenses Net income 653000 485100 167900 102000 47000 18900