Question
The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 658,000 Direct labor cost $ 86,000
The following data from the just completed year are taken from the accounting records of Mason Company:
Sales | $ 658,000 |
---|---|
Direct labor cost | $ 86,000 |
Raw material purchases | $ 136,000 |
Selling expenses | $ 103,000 |
Administrative expenses | $ 49,000 |
Manufacturing overhead applied to work in process | $ 222,000 |
Actual manufacturing overhead costs | $ 209,000 |
Inventories | Beginning | Ending |
---|---|---|
Raw materials | $ 8,800 | $ 10,600 |
Work in process | $ 5,400 | $ 21,000 |
Finished goods | $ 78,000 | $ 25,100 |
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.
Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
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Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.
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Prepare an income statement.
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