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 $652,000 $ 89,000 $137,000 $103,000 $ 49,000 $208,000 $225,000 Inventories Beginning Ending Raw materials $ 8,400 $10,200 Work in $ 5,000 $20,200 process Finished goods $78,000 $25,800 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 Required Required 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 _ Dacia Docuired

Answer 1

Answer- MASON COMPANY

Schedule of Cost of Goods Manufactured

Direct Materials:-
Beginning raw materials inventory	$8,400
Add:Purchases of raw materials	$137,000
Raw materials available for use	$145,400
Less: Ending raw materials inventory	$10,200
Raw materials used in production		$135,200
Add: Direct labor		$89,000
Add:Manufacturing overhead		$208,000
Total Manufacturing costs		$432,200
Add: Beginning work in process inventory		$5,000
		$437,200
Less:Ending work in process inventory		$20,200
Cost of Goods Manufactured		$417,000

MASON COMPANY

Schedule of Cost of Goods Sold

Beginning finished goods inventory	$78,000
Add: Cost of Goods Manufactured	$417,000
Goods available for sale	$495,000
Less: Ending finished goods inventory	25,800
Unadjusted cost of goods sold	$469,200
Add: Underapplied overhead	$17,000
Adjusted Cost of Goods Sold	$486,200

Underapplied overhead= Actual manufacturing overhead costs-Manufacturing overhead applied to work in process

=$225,000-$208,000

=$17,000

MASON COMPANY

Income Statement

Sales		$652,000
Less: Cost of goods sold		$486,200
Gross Margin		$165,800
Less: Selling and administrative expenses:-
Selling expenses	$103,000
Administrative expenses	$49,000
Total Selling and Administrative Expenses		$152,000
Net Operating Income		$13,800

Kindly give me thumbs up if u like my answer...Thanks!!!