Question
The following data from the just completed year are taken from the accounting records of Mason Company: Sales$651,000Direct labor cost$86,000Raw material purchases$138,000Selling expenses$103,000Administrative expenses$43,000Manufacturing overhead
The following data from the just completed year are taken from the accounting records of Mason Company:
Sales$651,000Direct labor cost$86,000Raw material purchases$138,000Selling expenses$103,000Administrative expenses$43,000Manufacturing overhead applied to work in process$226,000Actual manufacturing overhead costs$209,000
InventoriesBeginningEndingRaw materials$8,500$10,500Work in process$5,000$20,400Finished goods$71,000$25,800
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started