Question
The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 659,000 Direct labor cost $ 80,000
| The following data from the just completed year are taken from the accounting records of Mason Company: |
| Sales | $ | 659,000 |
| Direct labor cost | $ | 80,000 |
| Raw material purchases | $ | 131,000 |
| Selling expenses | $ | 106,000 |
| Administrative expenses | $ | 47,000 |
| Manufacturing overhead applied to work in process | $ | 208,000 |
| Actual manufacturing overhead costs | $ | 225,000 |
|
| ||
| Inventories | Beginning of Year | End of Year | ||
| Raw materials | $ | 8,600 | $ | 10,600 |
| Work in process | $ | 5,700 | $ | 20,500 |
| Finished goods | $ | 78,000 | $ | 25,100 |
|
| ||||
| 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. |
| 3. | Prepare an income statement. |
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ACCOUNTING JOB QUESTIONS AND ANSWERS Trainee Accountants Handbook
Authors: Sterling Libs FCCA
1st Edition
1911037129, 978-1911037125
