Question

mework Saw 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 $524,000 $70,000 $110,000 $140,eee $ 63,000 $ 90,eee $ 80,000 Inventories Raw materials Work in process Finished goods Beginning Ending 5 7,000 5 15,00 $ 10,000 $5,000 $ 20,000 $35,000 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 2 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 < Prev 5 of 6 Next > D ere to search o E

I have some of the answers filled out but not all of them

Answer 1

Schedule of cost of goods manufactured

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Particulars Amount ($)

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DIRECT MATERIALS :

Opening inventory 7,000

Add: purchases 118,000

Less: Closing inventory - 15,000

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Inventory used in production        110,000 ( a )

DIRECT LABOUR    70,000 ( b )

MANUFACTURING OVERHEADS APPLIED 90,000   ( c )

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TOTAL MANUFACTURING COSTS [a+b+c] 270,000

Add: Opening work in progress 10,000

less: Closing work in progress - 5000

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COST OF GOODS MANUFACTURED 275,000

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SCHEDULE OF COST OF GOODS SOLD

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Particulars Amount ($)

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Opening stock of finished goods 20,000

Add: Cost of goods manufactured 275,000

Less: Closing stock of finished goods - 35000

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Unadjusted cost of goods sold 260,000

less: Over application of overheads [90,000 - 80,000] - 10,000

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Adjusted COST OF GOODS SOLD 250,000

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3)    INCOME STATEMENT

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  Particulars Amount ($)

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Sales 524,000

Less: Cost of goods sold - 250,000

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Gross profit 274,000

Less: Administrative expenses - 63,000

Selling expenses - 140,000

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NET INCOME 71,000

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