Question

The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 656,000 Direct labor cost $ 86,000 Raw material purchases $ 132,000 Selling expenses $ 107,000 Administrative expenses $ 42,000 Manufacturing overhead applied to work in process $ 207,000 Actual manufacturing overhead costs $ 223,000 Inventories Beginning Ending Raw materials $ 8,100 $ 10,300 Work in process $ 5,800 $ 20,300 Finished goods $ 79,000 $ 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.

Answer 1