The following data from the just completed year are taken from the accounting records of Mason Company:
Sales
$ 524,000
Direct labor cost
$ 70,000
Raw material purchases
$ 118,000
Selling expenses
$ 140,000
Administrative expenses
$ 63,000
Manufacturing overhead applied to work in process
$ 90,000
Actual manufacturing overhead costs
$ 80,000
Inventories
Beginning
Ending
Raw materials
$ 7,000
$ 15,000
Work in process
$ 10,000
$ 5,000
Finished goods
$ 20,000
$ 35,000
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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
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
$ 10,000
Direct materials:
Purchases of raw materials
$ 7,000
Add: Purchases of raw materials
118,000
Total raw materials available
125,000
Less: Ending raw materials inventory
15,000
Direct materials used in production
