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

90.2K

Verified Solution

Question

Accounting

The following data from the just completed year are taken fromthe 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 allraw materials used in production were direct materials.
2. Prepare a schedule of cost of goods sold. Assume that thecompany's underapplied or overapplied overhead is closed to Cost ofGoods Sold.
3. Prepare an income statement.

Answer & Explanation Solved by verified expert

3.7 Ratings (558 Votes)

See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingThe following data from the just completed year are taken fromthe accounting records of Mason...The following data from the just completed year are taken fromthe accounting records of Mason Company: Sales$654,000Direct labor cost$80,000Raw material purchases$139,000Selling expenses$100,000Administrative expenses$40,000Manufacturing overhead applied to work in process$230,000Actual manufacturing overhead costs$204,000InventoriesBeginningEndingRaw materials$8,500$10,800Work in process$5,400$20,700Finished goods$78,000$25,800Required:1. Prepare a schedule of cost of goods manufactured. Assume allraw materials used in production were direct materials.2. Prepare a schedule of cost of goods sold. Assume that thecompany's underapplied or overapplied overhead is closed to Cost ofGoods Sold.3. Prepare an income statement.


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