The following data from the just completed year are taken from the accounting records of Mason Company. Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process 203,000 Actual manufacturing overhead costs $ 656,000 $ 85,000 $ 130,000 108,000 $ 49,000 224,000 Beginning End of of Year $ 8,500 10,100 $ 5,700 20,600 $77,000 25,100 Year Raw materials Work in process Finished goods Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. mpany Schedule of Cost of Goods Manufactured Direct materials Beginning raw materials inventory $ 8,500 130,000 Add: Purchases of raw materials Raw materials available for use Less: Ending raw materials inventory Raw materials used in production 138 10,100 $ 128 203,000 85,000 416,400 5,700 422,100 20,600 S 401,500 Direct labor Total Add: Beginning work in process inventory costs Less: Ending work in process inventory Cost of goods manufactured 2. Prepare a schedule of cost of goods sold. Schedule of Cost of Goods Sold goods inventory $77,000 401,500 478,500 25,100 453,400 21,000 $474,400 Add: Cost of goods manufactured Unadjusted cost of goods sold Add: U Adjusted cost of goods sold overhead ncome Statement $656,000 474,400 181,600 Cost of goods sold Selling a Administrative expense Selling expenses 49,000 108,000 157,000 24,600 Net operating income