The following data from the just completed year are taken from the accounting records of Mason Company: 650,000 Sales Direct labor cost $83,000 139,000 Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $110,000 $ 43,000 202,000 227,000 Inventories Raw materials Beginning End of of Year Year $ 8,700 $10,300 20,200 $5,200 $ $ 72,000 $ 25,500 Work in process Finished goods ta Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. Answer is complete and correct. Mason Company Schedule of Cost of Goods Manufactured Direct materials: Beginning raw materials inventory $ 8,700 Add: Purchases of raw materials 139,000 Raw materials available for use 147,700 10,300 Less: Ending raw materials inventory Raw materials used in production $ 137,400 83,000 Direct labor 202,000 Manufacturing overhead Total manufacturing costs Add: Beginning work in process inventory 422,400 5,200 427,600 20,200 Less: Ending work in process inventory Cost of goods manufactured $ 407,400 2. Prepare a schedule of cost of goods sold. X Answer is complete but not entirely correct. Mason Company Schedule of Cost of Goods Sold $ Beginning finished goods inventory Add: Cost of goods manufactured Goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Add: Underapplied overhead Adjusted cost of goods sold 72,000 407,400 479,400 25,500 453,900 24,000 477,900 $ 3. Prepare an income statement. X Answer is complete but not entirely correct. Mason Company Income Statement Sales $ 650,000 1 x 649,999 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expense Net operating income 1 x 1 x 2 $ 649,997