Question

1 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 $ 656,000 $ 87,000 $ 136,000 $ 106,000 $ 49,000 $ 229,000 $ 200,000 Book Hint Inventories Raw materials Work in process Finished goods Beginning $ 8,400 $ 5,000 $ 72,000 Ending $ 10,600 $ 20,500 $ 25,300 Print 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. rences Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3

Answer 1

1.

$ 5,000.00 Schedule of cost of goods manufactured Beginning work in process Direct Materials Beginning raw material $ 8,400.00 Raw material purchased $ 1,36,000.00 Raw Material Aailable for use $1,44,400.00 Less: Ending raw material $ -10,600.00 Raw material consumed $1,33,800.00 Direct labour cost $ 87,000.00 Actual manufaturing Overhead $2,00,000.00 cost Total manufacturing cost Beginning Work in proess Unadusted cost of goods sold Less: Ending work in process Cost of goods manufactured $ 4,20,800.00 $ 5,000.00 $ 4,25,800.00 $ 20,500.00 $ 4,05,300.00

2.

SCHEDULE OF COST OF GOODS SOLD : 72000 $ 4,05,300.00 $ 4,77,300.00 Beginning finished goods inventory Add: Cost of goods maufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Less: Overapplied overhead -25300 $ 4,52,000.00 -29000 Adjusted cost of goods sold $ 4,23,000.00

3.