a. $76,100 in raw materials were purchased for cash. b. $71,600 in raw materials were used in production. Of this amount, $65,700 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $150,300 were incurred and paid. Of this amount, $134,400 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $125,300 were incurred and paid. e. Manufacturing overhead of $122,100 was applied to production using the company's predetermined overhead rate. f. All of the jobs in process at the end of the month were completed. g. All of the completed jobs were shipped to customers. h. Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold. Required: 1. Post the above transactions to T-accounts. 2. Determine the adjusted cost of goods sold for the period. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the adjusted cost of goods sold for the period. Adjusted cost of goods sold < Required 1 Required 2 > Beginning balance Debit Cash Ending balance Beginning balance b. C. e. Ending balance Beginning balance b. C. d. Credit Debit 0 Beginning balance 76,100 a. a. 150,300 c. 125,300 d. 351,700 Ending balance Raw Materials Credit 0 76,100 71,600 b. 4,500 Work in Process Debit Credit Finished Goods Debit Credit 0 Beginning balance 65,700 322,200 f. f. 0 322,200 322,200 g. 134,400 122,100 Debit Manufacturing Overhead 125,300 Ending balance 3,200 Ending balance Cost of Goods Sold Credit Debit Credit Beginning balance 122,100 e. g. 0 322,200 h. [h. Ending balance 322,200 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 Inventories Raw materials Work in process Finished goods Required: Beginning Ending $ 8,200 $ 10,200 $ 5,500 $ 20,900 $ 79,000 $ 25,600 $ 659,000 $ 84,000 $ 136,000 $ 101,000 $ 46,000 $ 221,000 $ 208,000 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. Direct materials: Mason Company Schedule of Cost of Goods Manufactured Total raw materials available Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured 0 0 Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Mason Company Schedule of Cost of Goods Sold Prepare an income statement. Mason Company Income Statement Selling and administrative expenses: 0 0 0 Osborn Manufacturing uses a predetermined overhead rate of $19.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $269,280 of total manufacturing overhead for an estimated activity level of 13,600 direct labor-hours. The company actually incurred $265,000 of manufacturing overhead and 13,100 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? 1. Manufacturing overhead 2. The gross margin would by by