Question

Saved 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 $ 654,000 84, 000 $ 140,000 $ 100,000 $ 47.000 $ 207.000 $ 224,000 Inventories Raw materials Work in process Finished goods Beginning $ 8,200 $ 5,700 $ 70,000 Ending $ 11,000 $ 20,700 $ 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 eompany'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

Answer 1

1.

Schedule of Cost of Goods manufactured
Direct Materials
Raw Material, Beginning Inventory	$          8,200
Add: Purchases	$      140,000
Total Raw Material Available	$      148,200
Deduct : Raw Material in inventory, ending	$        11,000
Raw Material used in production		$      137,200
Direct Labor		$        84,000
Manufacturing Overhead Applied		$      207,000
Total Manufacturing Costs		$     428,200
Add: Beginning Work in Process Inventory		$          5,700
Total Manufacturing Costs to account for		$      433,900
Deduct: Ending Work in Process Inventory		$        20,700
Cost of Goods Manufactured		$     413,200

2.

Schedule of Cost of Goods Sold
Finished Goods Inventory, Beginning		$        70,000
Add: Cost of Goods Manufactured		$      413,200
Cost of Goods Available for sale		$      483,200
Deduct : Finished Goods Inventory, Ending		$        25,500
Unadjusted Cost of goods sold		$     457,700
Underapplied Overhead		$        17,000
Adjusted Cost of goods sold		$     474,700

3.

Income Statement
Sales Revenue		$      654,000
Cost of Goods Sold		$      474,700
Gross Profit		$     179,300
Operating Expenses
Selling Expenses	$      100,000
Administrative Expenses	$        47,000
Total Operating Expenses		$      147,000
Net Income (Loss)		$        32,300

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