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

Sales	$	658,000
Direct labor cost	$	90,000
Raw material purchases	$	138,000
Selling expenses	$	107,000
Administrative expenses	$	47,000
Manufacturing overhead applied to work in process	$	209,000
Actual manufacturing overhead costs	$	223,000

Inventories	Beginning		Ending
Raw materials	$	8,500	$	10,800
Work in process	$	5,600	$	20,600
Finished goods	$	75,000	$	25,000

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.

Question 2

Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below.

1. $76,000 in raw materials were purchased for cash.
2. $72,100 in raw materials were used in production. Of this amount, $65,100 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $151,400 were incurred and paid. Of this amount, $133,800 was for direct labor and the remainder was for indirect labor.
4. Additional manufacturing overhead costs of $125,200 were incurred and paid.
5. Manufacturing overhead of $129,800 was applied to production using the companys predetermined overhead rate.
6. All of the jobs in process at the end of the month were completed.
7. All of the completed jobs were shipped to customers.
8. Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold.

Required:

1. Post the above transactions to T-accounts.
2. Determine the adjusted cost of goods sold for the period.