The following data from the just completed year are taken from the accounting records of Mason Company:
Sales $ 524,000
Direct labor cost $ 70,000
Raw material purchases $ 118,000		9
Selling expenses $ 140,000
Administrative expenses $ 63,000
Manufacturing overhead applied to work in process $ 90,000
Actual manufacturing overhead costs $ 80,000
Inventories beg end
Raw materials $ 7,000 $ 15,000
Work in process $ 10,000 $ 5,000
Finished goods $ 20,000 $ 35,000
Required:
1
What is a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
2
What is a schedule of cost of goods sold.
3
create an income Statement
	Mason Company
	Schedule of Cost of Goods Manufactured
	Direct materials:
	Beginning raw materials inventory $7,000
	Add: Purchases of raw materials 118,000
	Raw materials available for use 125,000
	Less: Ending raw materials inventory 15,000
	Raw materials used in production $110,000
	Direct labor 70,000
	Manufacturing overhead cost applied to work in process 90,000
	Total manufacturing costs 270,000
	Add: Beginning work in process inventory 10,000
	280,000
	Less: Ending work in process inventory 5,000
	Cost of goods manufactured $275,000
	Mason Company
	Schedule of Cost of Goods Sold
	Beginning finished goods inventory $20,000
	Add: Cost of goods manufactured 275,000
	Goods available for sale 295,000
	Less: Ending finished goods inventory 35,000
	Unadjusted cost of goods sold 260,000
	Less: Overapplied overhead 10,000
	Adjusted cost of goods sold $250,000