The following data from the just completed year are taken from the accounting records of Mason Company Sales $ 656,000 Direct labor cost $ 85,000 Raw material purchases $ 135,000 Selling expenses $ 102,000 Administrative expenses $ 46,000 Manufacturing overhead applied to work in process $ 229,000 Actual manufacturing overhead costs $ 206,000 Inventories Beginning Ending Raw materials $ 8,600 $ 10,000 Work in process $ 5,100 $ 20,900 Finished goods $ 71,000 $ 25,500 Required 1 Prepare a schedule of cost of goods manufactured Assume all raw materials used in production were direct materials 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 Beginning work in process inventory $5,100 Direct materials Beginning raw materials inventory $8,600 Add Purchases of raw materials 135,000 Total raw materials available 143,600 Less Ending raw materials inventory 10,000 Direct materials used in production Manufacturing overhead 229,000 Direct labor 85,000 Total manufacturing costs added to production 314,000 Total manufacturing costs to account for 319,100 Less Ending work in process inventory 20,900 Cost of goods manufactured 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 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 Beginning finished goods inventory $71,000 Add Cost of goods manufactured Cost of goods available for sale Less Ending finished goods inventory Unadjusted cost of goods sold Less Overapplied overhead Adjusted cost of goods sold 3 Prepare an income statement Prepare an income statement Mason Company Income Statement Sales $656,000 Cost of goods sold Gross margin 656,000 Selling and administrative expenses Selling expenses Administrative expense 0 Net operating income

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Posted on Sep 21, 2024

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

Sales	$ 656,000
Direct labor cost	$ 85,000
Raw material purchases	$ 135,000
Selling expenses	$ 102,000
Administrative expenses	$ 46,000
Manufacturing overhead applied to work in process	$ 229,000
Actual manufacturing overhead costs	$ 206,000

Required:

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

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
Beginning work in process inventory			$5,100
Direct materials:
Beginning raw materials inventory	$8,600
Add: Purchases of raw materials	135,000
Total raw materials available	143,600
Less: Ending raw materials inventory	10,000
Direct materials used in production
Manufacturing overhead		229,000
Direct labor		85,000

Total manufacturing costs added to production			314,000
Total manufacturing costs to account for			319,100
Less: Ending work in process inventory			20,900
Cost of goods manufactured

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.

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
Beginning finished goods inventory	$71,000
Add: Cost of goods manufactured
Cost of goods available for sale
Less: Ending finished goods inventory
Unadjusted cost of goods sold
Less: Overapplied overhead
Adjusted cost of goods sold

3. Prepare an income statement.

Prepare an income statement.

Mason Company
Income Statement
Sales		$656,000
Cost of goods sold
Gross margin		656,000
Selling and administrative expenses:
Selling expenses
Administrative expense
		0
Net operating income