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

Sales	$ 652,000
Direct labor cost	$ 86,000
Raw material purchases	$ 138,000
Selling expenses	$ 102,000
Administrative expenses	$ 48,000
Manufacturing overhead applied to work in process	$ 223,000
Actual manufacturing overhead costs	$ 203,000

Inventories	Beginning	Ending
Raw materials	$ 8,700	$ 10,400
Work in process	$ 5,500	$ 20,800
Finished goods	$ 76,000	$ 25,500

Required:

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

1-1. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $34,000.

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.

2-2. 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.

Selected T-accounts of Moore Company are given below for the just completed year:

Raw Materials
Debit		Credit
Balance 1/1	29,000	Credits	?
Debits	148,000
Balance 12/31	39,000

Manufacturing Overhead
Debit		Credit
Debits	196,800	Credits	?

Work in Process
Debit		Credit
Balance 1/1	34,000	Credits	512,000
Direct materials	104,000
Direct labor	192,000
Overhead	220,800
Balance 12/31	?

Factory Wages Payable
Debit		Credit
Debits	213,000	Balance 1/1	16,000
		Credits	208,000
		Balance 12/31	11,000

Finished Goods
Debit		Credit
Balance 1/1	54,000	Credits	?
Debits	?
Balance 12/31	81,000

Cost of Goods Sold
Debit		Credit
Debits	?

Required:

1. What was the cost of raw materials used in production during the year?

2. How much of the materials in (1) above consisted of indirect materials?

3. How much of the factory labor cost for the year consisted of indirect labor?

4. What was the cost of goods manufactured for the year?

5. What was the unadjusted cost of goods sold for the year? Do not include any underapplied or overapplied overhead in your answer.

6. If overhead is applied to production on the basis of direct labor cost, what predetermined overhead rate was in effect during the year?

7. Was manufacturing overhead underapplied or overapplied? By how much?

8. Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year. If $11,500 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost?

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):

Selling expenses	$ 215,000
Purchases of raw materials	$ 266,000
Direct labor	?
Administrative expenses	$ 157,000
Manufacturing overhead applied to work in process	$ 371,000
Actual manufacturing overhead cost	$ 359,000

Inventory balances at the beginning and end of the year were as follows:

	Beginning	Ending
Raw materials	$ 56,000	$ 36,000
Work in process	?	$ 27,000
Finished goods	$ 36,000	?

The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $663,000; and the net operating income was $40,000. The companys underapplied or overapplied overhead is closed to Cost of Goods Sold.

Required:

Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)