2. The following data from the just completed year are taken from the accounting records of...

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Accounting

2. The following data from the just completed year are takenfrom the accounting records of Mason Company:
sales
$700,000
direct labor cost
$100,000
raw material purchase
$115,000
selling expenses
$150,000
administrative expenses
$65,000
Manufacturing overhead applied to work in process
$100,000
Actual manufacturing overhead costs
$120,000
Inventories
Beginning
Ending
Raw materials
$10,000
$15,000
Work in process
$10,000
$2,000
Finished goods
$20,000
$35,000
a) Prepared a schedule of cost of goods manufactured. Assume allraw materials used in production were direct materials.
b) Prepare a schedule of cost of goods sold. Assume thecompany’s underapplied or overapplied overhead is closed to Cost ofGoods Sold.
C) Prepare an income statement

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Requirement a Mason company Schedule of Cost of Goods Manufactured Direct Material Raw material Inventory Beginning 1000000 Raw material Purchased 11500000 Raw material available for use 12500000 Less Raw material See Answer

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sales	$700,000
direct labor cost	$100,000
raw material purchase	$115,000
selling expenses	$150,000
administrative expenses	$65,000
Manufacturing overhead applied to work in process	$100,000
Actual manufacturing overhead costs	$120,000

Inventories	Beginning	Ending
Raw materials	$10,000	$15,000
Work in process	$10,000	$2,000
Finished goods	$20,000	$35,000