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The following data from the just completed year are taken from the accounting records of Mason Company:
| | | |
| Sales | $ | 652,000 |
| Direct labor cost | $ | 81,000 |
| Raw material purchases | $ | 133,000 |
| Selling expenses | $ | 108,000 |
| Administrative expenses | $ | 48,000 |
| Manufacturing overhead applied to work in process | $ | 229,000 |
| Actual manufacturing overhead costs | $ | 206,000 |
| |
| Inventories | Beginning | Ending |
| Raw materials | $ | 8,300 | $ | 10,000 |
| Work in process | $ | 5,400 | $ | 20,800 |
| Finished goods | $ | 74,000 | $ | 25,500 |
| |
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.
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