Question
Exercise 3-6 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO3-3] The following data from the just completed year are
Exercise 3-6 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 | $ | 654,000 |
Direct labor cost | $ | 83,000 |
Raw material purchases | $ | 138,000 |
Selling expenses | $ | 109,000 |
Administrative expenses | $ | 42,000 |
Manufacturing overhead applied to work in process | $ | 200,000 |
Actual manufacturing overhead costs | $ | 225,000 |
Inventories | Beginning | Ending | ||
Raw materials | $ | 8,500 | $ | 10,900 |
Work in process | $ | 5,700 | $ | 21,000 |
Finished goods | $ | 79,000 | $ | 25,800 |
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.
Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
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Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.
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Prepare an income statement.
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