Question

Primare Corporate work Assignment #6 Saved Help 3 Exercise 3-6 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement (LO3-3) 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 $ 83,000 $ 132,000 $ 100,000 $ 41,000 $ 223,000 $ 201,000 Inventories Raw materials Work in process Finished goods Beginning $ 8,200 $ 6,000 $ 75,000 Ending $ 10,600 $ 20,600 $ 25,500 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 Goods Sold. 3. Prepare an income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3

i know some of this is wrong, please help

Answer 1

1.

Mason Company
Schedule of cost of goods manufactured
Beginning WIP inventory		$6,000
Direct materials:
Beginning raw materials inventory	8,200
Add: Purchase of raw materials	132,000
Total raw materials available	140,200
Less: Ending raw materials inventory	(10,600)
Direct materials used in production		$129,600
Ditrect labour		$83,000
Manufacturing OH		$223,000
Total manufacturing cost added to production		$441,600
Less: Ending WIP inventory		($20,600)
Cost of goods manufactured		$421,000

2.

Mason Company
Schedule of cost of goods sold
Beginning finished goods inventory	$75,000
Add: Cost of goods manufactured	$421,000
Cost of goods available for sale	$496,000
Less: Ending finished goods inventory	($25,500)
Unadjusted cost of goods sold	$470,500
Add: Overapplied overhead	($22,000)
Adjusted cost of goods sold	$448,500

3.

Mason Company
Income statement
Sales		$657,000
Cost of goods sold		($448,500)
Gross margin		$208,500
Selling & Administrative expenses:
Selling expense	$100,000
Administrative expenses	$41,000
		$141,000
Net operating income		$67,500