Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 | $ | 651,000 |
Direct labor cost | $ | 83,000 |
Raw material purchases | $ | 136,000 |
Selling expenses | $ | 107,000 |
Administrative expenses | $ | 42,000 |
Manufacturing overhead applied to work in process | $ | 226,000 |
Actual manufacturing overhead costs | $ | 208,000 |
Inventories | Beginning | Ending | ||
Raw materials | $ | 8,400 | $ | 10,500 |
Work in process | $ | 6,000 | $ | 20,500 |
Finished goods | $ | 79,000 | $ | 25,100 |
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started