In: Accounting
The following data from the just completed year are taken from the accounting records of Mason Company:
Sales | $ | 654,000 |
Direct labor cost | $ | 80,000 |
Raw material purchases | $ | 139,000 |
Selling expenses | $ | 100,000 |
Administrative expenses | $ | 40,000 |
Manufacturing overhead applied to work in process | $ | 230,000 |
Actual manufacturing overhead costs | $ | 204,000 |
Inventories | Beginning | Ending | ||
Raw materials | $ | 8,500 | $ | 10,800 |
Work in process | $ | 5,400 | $ | 20,700 |
Finished goods | $ | 78,000 | $ | 25,800 |
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.