The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed:

The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: Costs incurred: Direct labor cost Purchases of raw materials $82,000 137,000 $ $204,000 Manufacturing overhead Advertising expense Sales salaries $ 42,000 107,000 Depreciation, office equipment $224,000 Beginning of the Year End of the Year $ 8,500 $ 11,000 Inventories: Raw materials Work in process Finished goods $ 5,000 $20,500 $75,000 $25,900 Required: 1. Prepare a schedule of cost of goods manufactured. MASON COMPANY Schedule of Cost of Goods Manufactured Direct materials: Beginning raw materials inventory $ 8,500 Add: Purchases of raw materials 137,000 Raw materials available for use 145,500 P Raw materials used in production $ 145,500 Direct labor 82,000 204,000 Add: Manufacturing overhead cost Total manufacturing costs Add: Ending work in process inventory 431,500 5,000 436,500 20,500 Less: Ending work in process inventory Cost of goods manufactured $ 416,000 2. Prepare the cost of goods sold section of Mason Company's income statement for the year. MASON COMPANY Schedule of Cost of Goods Sold $ 75,000 416,000 Beginning finished goods inventory Add: Cost of goods manufactured Goods available for sale Less: Ending finished goods inventory Cost of goods sold 491,000 25,900 465,100 $