Question

Gma = Lavronmental Sci. YouTube Exercises (1 pt) Saved Help Save CI The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor coat Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 651,000 $ 86,000 $ 130,000 $ 100,000 $ 49,000 $ 209,000 $ 224,000 3:56:04 ook Inventories Raw materiale Work in process Finished goods Beginning Ending $ 8.700 $ 10,200 $5.900 $ 20,100 $ 74,000 $ 25,500 ences 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 3 < Prey Next 17 MacBook Air * SO 889 00 $ % C 2 ) 3 5 & 7 6 8 9 o W E R T Y U 0 S D F G H J к L

Answer 1

1. Schedule of cost of goods manufactured for Mason's Company:

Direct materials:
Beginning raw materials inventory........................................	$ 8,700
Add: Purchases of raw materials...........................................	130,000
Raw materials available for use..............................................	138,700
Deduct: Ending raw materials inventory...............................	10,200
Raw materials used in production..........................................		$128,500
Direct labor................................................................................		86,000
Manufacturing overhead............................................................		209,000
Total manufacturing costs..........................................................		423500
Add: Beginning work in process inventory...............................		5,900
		429,400
Deduct: Ending work in process inventory...............................		20,100
Cost of goods manufactured.....................................................		$409,300

2. Schedule of cost of goods sold for Mason's Company:

Beginning finished goods inventory................................	$ 74,000
Add: Cost of goods manufactured..................................	409,300
Goods available for sale...................................................	483,300
Deduct: Ending finished goods inventory.......................	25,500
Unadjusted cost of goods sold........................................	$457,800
Add: Underapplied overhead........................................	$15,000
Adjusted cost of goods sold............................................	$472,800

3.

Mason Company Income Statement
Sales.........................................................................................		$651,000
Cost of goods sold ($457,800 + $15,000)...............................		472,800
Gross margin...................................................................................		178,200
Selling and administrative expenses:
Selling expenses.................................................................	$100,000
Administrative expense......................................................	49,000	149,000
Net operating income..............................................................		$ 29,200