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 Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs Inventories Beginning Ending Raw materials $7,000 $15,000 Work in process $10,000 $5,000 Finished goods $20,000 $35,000 $524,000 $70,000 $ 118,000 $140,000 $63,000 $90,000 $80,000 Required: Page 136 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. accounting records of Mason Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs Inventories Beginning Ending Raw materials $7,000 $15,000 Work in process $ 10,000 $5,000 Finished goods $20,000 $35,000 $524,000 $70,000 $ 118,000 $ 140,000 $63,000 $90,000 $80,000 Required: Page 136 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