Question

Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 655, eee $ 86, eee $ 140, eee $ 102, eee $ 44, eee $ 207, eee $ 226, eee Inventories Raw materials Work in process Finished goods Beginning $ 8,eee $ 5,400 $ 73,eee Ending $ 11, eee $ 20,800 $ 25, 120 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. % Answer is complete but not entirely correct. 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: Beginning raw materials inventory $ 8,000 140,000 148,000 11,000 Add: Purchases of raw materials Total raw materials available Less: Ending raw materials inventory Raw materials used in production Direct labor Manufacturing overhead Total manufacturing costs Add: Beginning work in process inventory $ 137,000 86,000 226,000 449,000 5,400 454,400 20,800 $ 433,600 Less: Ending work in process inventory Cost of goods manufactured

Answer 1

$ 1480 Mason Company Schedule of Cost of Goods Manufactured Direct Materials: Beginning raw materials inventory 8,000 Add: Purchases of raw materials $ 140,000 Total raw materials available 148,000 Less: Ending raw materials inventory 11,000 Raw materials used in production Direct Labor Manufacturing Overhead Total manufacturing costs Add: Beginning work in process inventory $ 137,000 86,000 207,000 430,000 5,400 435,400 20,800 414,600 Less: Ending work in process inventory Cost of Goods manufactured $ Mason Company Schedule of Cost of Goods Sold Beginning finished goods inventory Add: Cost of Goods manufactured $ Cost of goods available for sale $ Less: Ending finished goods inventory $ Unadjusted cost of goods sold Add: Underapplied overhead Adjusted cost of goods sold 73,000 414,600 487,600 25,100 $ $ $ 462,500 19,000 481,500

Mason Company Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Net Operating Income $ $ $ 655,000 481,500 173,500 102,000 44,000 $ $ $ 146,000 27,500