Question
The following data from the just-completed year are taken from the accounting records of Mason Company: Sales $ 657,000 Direct labor cost $ 85,000 Raw
The following data from the just-completed year are taken from the accounting records of Mason Company: Sales $ 657,000 Direct labor cost $ 85,000 Raw material purchases $ 138,000 Selling expenses $ 109,000 Administrative expenses $ 44,000 Manufacturing overhead applied to work in process $ 224,000 Actual manufacturing overhead costs $ 201,000 Inventories Beginning Ending Raw materials $ 8,300 $ 10,900 Work in process $ 5,300 $ 20,400 Finished goods $ 78,000 $ 25,400 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.
Mason Company | |||
Schedule of Cost of Goods Manufactured | |||
Direct materials | |||
Total raw materials available | |||
Direct materials used in production | |||
Total manufacturing costs added to production | |||
Total manufacturing costs to account for | |||
Cost of goods manufactured |
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