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
