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

Sales	$	656,000
Direct labor cost	$	83,000
Raw material purchases	$	137,000
Selling expenses	$	110,000
Administrative expenses	$	48,000
Manufacturing overhead applied to work in process	$	222,000
Actual manufacturing overhead costs	$	201,000

Inventories	Beginning		Ending
Raw materials	$	8,400	$	10,600
Work in process	$	5,100	$	20,700
Finished goods	$	74,000	$	25,500

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
Beginning work in process inventory			$5,100
Direct materials:
Beginning raw materials inventory	$8,400
Add: Purchases of raw materials	137,000
Total raw materials available	145,400
Less: Ending raw materials inventory	10,600
Direct materials used in production
Direct labor		83,000
Manufacturing overhead		222,000
Total manufacturing costs added to production			305,000
Total manufacturing costs to account for			310,100
Less: Ending work in process inventory			20,700
Cost of goods manufactured

Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Prepare an income statement.

Mason Company
Income Statement
		0
Selling and administrative expenses:
		0
		$0

Mason Company
Schedule of Cost of Goods Sold