Sales	$	652,000
Direct labor cost	$	86,000
Raw material purchases	$	136,000
Selling expenses	$	101,000
Administrative expenses	$	44,000
Manufacturing overhead applied to work in process	$	208,000
Actual manufacturing overhead costs	$	222,000

Inventories	Beginning		Ending
Raw materials	$	8,700	$	10,200
Work in process	$	5,800	$	20,900
Finished goods	$	74,000	$	25,800

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.

Mason Company
Schedule of Cost of Goods Manufactured
Direct materials:
Beginning raw materials inventory
Add: Purchases of raw materials
Total raw materials available
Less: Ending raw materials inventory
Raw materials used in production
Direct labor
Manufacturing overhead
Total manufacturing costs
Add: Beginning work in process inventory
		0
Less: Ending work in process inventory
Cost of goods manufactured

Mason Company
Schedule of Cost of Goods Sold
Beginning finished goods inventory
Add: Cost of goods manufactured
Cost of goods available for sale
Less: Ending finished goods inventory
Adjusted cost of goods sold
Less: Underapplied overhead
Adjusted cost of goods sold

Prepare an income statement.

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