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Q-1: The following cost and inventory data are taken from the accounting records of Mason...

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Accounting

Q-1: The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: (5-Marks)

  • Sales ..................................................$555,000

Costs incurred:

  • Direct labor cost ..............................$66,000
  • Purchases of raw materials............ $118,000
  • Manufacturing overhead................ $70,000
  • Advertising expense........................ $90,000
  • Sales salaries.................................... $55,000
  • Depreciation, office equipment......$3,000

Date: ............................1/1/2020 to 31/12/2020

  • Inventories:
  • Raw materials ......$8,000 ............$26,000
  • Work in process ...$15,000.......... $12,000
  • Finished goods .....$21,000......... $35,000

Calculate then report the number only:

Step-1: calculate the Cost of goods Manufactured : .............

Step- 2: Calculate the Cost of good available for sale: ...........

Step-3: Calculate the Gross Margin (income before non manufacturing overhead) : ............

Step-4: Calculate the Net Operating Income: .............

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