Q-1: The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: (5-Marks)

• Sales ..................................................$555,000

Costs incurred:

• Direct labor cost ..............................$66,000
• Purchases of raw materials............ $118,000
• Manufacturing overhead................ $70,000
• Advertising expense........................ $90,000
• Sales salaries.................................... $55,000
• Depreciation, office equipment......$3,000

Date: ............................1/1/2020 to 31/12/2020

• Inventories:
• Raw materials ......$8,000 ............$26,000
• Work in process ...$15,000.......... $12,000
• Finished goods .....$21,000......... $35,000

Calculate then report the number only:

Step-1: calculate the Cost of goods Manufactured : .............

Step- 2: Calculate the Cost of good available for sale: ...........

Step-3: Calculate the Gross Margin (income before non manufacturing overhead) : ............

Step-4: Calculate the Net Operating Income: .............