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

Sales $ 660,000

Direct labor cost $ 83,000

Raw material purchases $ 131,000

Selling expenses $ 101,000

Administrative expenses $ 40,000

Manufacturing overhead applied to work in process $ 209,000

Actual manufacturing overhead costs $ 224,000

Inventories	Beginning		Ending
Raw materials	$	8,900	$	10,500
Work in process	$	5,900	$	20,600
Finished goods	$	72,000	$	25,500

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 company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

3. Prepare an income statement.

Complete this question by entering your answers in the tabs below.

• Required 1

Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

Mason Company
Schedule of Cost of Goods Manufactured
Direct materials:
Total raw materials available
Raw materials used in production
Total manufacturing costs
Cost of goods manufactured

Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Mason Company
Schedule of Cost of Goods Sold

Prepare an income statement.

Mason Company
Income Statement
Selling and administrative expenses: