Question

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 $ 657,000 $ 81,000 $ 138,000 $ 108,000 $ 46,000 $ 201,000 $ 225,000 Inventories Raw materials Work in process Finished goods Beginning $ 8,300 $ 5,400 $ 77,000 Ending $ 10,300 $ 20,500 $ 25,800 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.

Answer 1

Answer -->l. Schedule of cost of goods manufactured Cost of goods manufactured Amount $8300 $138000 $(10300 $ 136000 Particulars Beginning. Raw materials Raw material buschases Ending Raw materials Direct materials used in booduction Add: Direct labor cost Addo Manufacturing overhead Manufacturing costs Add: Beginning work in process less; Ending Work in process Cost of goods manufactured $ 81000 $ 201000 $ 418000 $ 5400 $ 20500 $ 402900

-> 3. Income statement - Mason combang Income Statement Particulars Amount Sales lesso cost of goods sold (Adjusted) Gross profit less: Selling expenses lesso Administrative expenses Net profit $ 657000 $(478100 $178900 $(108000 $ (46000 $24900