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

Sales $ 658,000

Direct labor cost $ 87,000

Raw material purchases $ 132,000

Selling expenses $ 103,000

Administrative expenses $ 44,000

Manufacturing overhead applied to work in process $ 202,000

Actual manufacturing overhead costs $ 226,000

Inventories

Beginning: Ending

Raw materials $ 8,300 $ 10,500

Work in process $ 5,900 $ 20,900

Finished goods $ 77,000 $ 25,300

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.

Mason Company
Schedule of Cost of Goods Manufactured
Direct materials:
Total raw materials available
Raw materials used in production
Total manufacturing costs
Cost of goods manufactured