2-11

EXERCISE 2-11 Preparing a Schedule of Costs of Goods Manufactured and cost of Goods Sold [LO2, L04, L05] The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: Costs incurred: Direct labor cost. Purchases of raw materials Manufacturing overhead Advertising expense Sales salaries Depreciation, office equipment $70,000 $118,000 $80,000 $90,000 $50,000 $3,000 Beginning of the Year End of the Year Inventories: Raw materials Work in process Finished goods. $7,000 $10,000 $20,000 $15,000 $5,000 $35,000 Required: 1 Prepare a schedule of cost of goods manufactured. 2. Prepare the cost of goods sold section of Mason Company's income statement for the year