Question

Prepare the statements as required from the information provided

Answer 1

Mason Company
Schedule of Cost of Goods Manufactured
Direct Materials:
Beginning Raw Materials Inventory	$8,500
Add: Raw Materials Purchase	$134,000
Raw Materials available for use	$142,500
Less: Ending Raw Materials Inventory	-$11,000
Raw Materials used in Production		$131,500
Add: Direct Labor		$86,000
Add: Manufacturing Overhead		$226,000
Total Manufacturing Costs		$443,500
Add: Beginning WIP		$5,200
Less: Ending WIP		-$20,600
Cost of Goods Manufactured		$428,100

Mason Company
Schedule of Cost of Goods Sold
Beginning Finished Goods Inventory	$73,000
Add: Cost of Goods Manufactured	$428,100
Goods Available for Sale	$501,100
Less: Ending Finished Goods Inventory	-$25,800
Unadjusted Cost of Goods Sold	$475,300
Less: Overapplied Overhead	-$20,000
Adjusted Cost of Goods Sold	$455,300

Overapplied Overhead =

=$226,000 - $206,000 = $ 20,000

 

Mason Company
Income Statement
Sales		$655,000
Less: COGS		-$455,300
Gross Margin		$199,700
Selling and Distribution Expenses:
Selling Expenses	$106,000
Admin Expenses	$44,000
Total Selling and Administrative Expenses		-$150,000
Net Income		$49,700

Cost of Goods Manufactured: $428,100

Adjusted Cost of Goods Sold: $455,300

Net Income: $49,700