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	$	650,000
Direct labor cost	$	81,000
Raw material purchases	$	137,000
Selling expenses	$	102,000
Administrative expenses	$	41,000
Manufacturing overhead applied to work in process	$	224,000
Actual manufacturing overhead costs	$	207,000

Inventories	Beginning		Ending
Raw materials	$	8,400	$	10,400
Work in process	$	5,500	$	20,800
Finished goods	$	75,000	$	25,200

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.

_______________________________________________________________

Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

Mason Company
Schedule of Cost of Goods Manufactured
Direct materials:
Total raw materials available
Direct materials used in production
Total manufacturing costs added to production			0
Total manufacturing costs to account for			0
Cost of goods manufactured

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.

Mason Company
Schedule of Cost of Goods Sold

3.

Prepare an income statement.

Mason Company
Income Statement
		0
Selling and administrative expenses:
		0
		$0