Question:

The following data from the just-completed year are taken from the accounting records of Kenton Company:

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 companys underapplied or overapplied overhead is closed to Cost of Goods Sold.
3. Prepare an income statement.

Sales $ $ Direct labor cost $ Raw material purchases $ Selling expense $ Administrative expenses Manufacturing overhead applied to work in process $ Actual manufacturing overhead costs $ Inventories: Raw materials $ Work in process $ Finished goods 975,000 165,000 229,000 48,750 146,250 180,000 175,050 Beginning 18,000 $ 20,000 $ 9,000 $ Ending 17,500 14,750 11,000 $