Question

Assigniert EXIT Submit Check my work 17 Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 652,000 $ 82,000 $ 134,000 $ 100,000 $ 47,000 $ 210,000 $ 225,000 20 points eBook Hint Inventories Raw materials Work in process Finished goods Beginning $ 8,600 $ 6,000 $ 80,000 Ending $ 10,200 $ 20,300 $ 25, 200 Print References 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.

Answer 1

1. Mason Company Schedule of Cost of Goods Manufactured

Direct Material;
Beginning Raw Materials Inventory	$8,600
Add: Purchase of Raw Material	$134,000
Raw Materials Available for Use	$142,600
Less :Ending Raw Materials Inventory	$10,200
Raw Materials Used in Production		$132,400
Direct Labor		$82,000
Manufacturing Overhead Cost Applied to Work In Process		$210,000
Total Manufacturing Cost		$424,400
Add: Beginning Work In Process Inventory		$6,000
		$430,400
Less: Ending Work In Process Inventory		$20,300
Cost of Goods Sold		$410,100

2. Mason Company Shedule of Cost of Goods Sold

Beginning Fi8nished Goods Inventory	$80,000
Add: Cost of Goods Manufactured	$410,100
Goods Available for Sale	$490,100
Less: Ending Finished Goods Inventory	$25,200
Unadjusted Cost of Goods Sold	$464,900
Add: Underapplied Overhead	$15,000
Adjusted Cost of Goods Sold	$479,900

3 Mason Company Income Statement

Sales		$652,000
Cost of Goods Sold		$479,900
Gross Margin		$172,100
Selling And Administrative Expenses;
Selling Expenses	$100,000
Administrative Expenses	$47,000
		$147,000
Net Operating Income		$25,100