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he following data from the just completed year are taken from the accounting records of Mason Company:
| | | |
| Sales | $ | 653,000 |
| Direct labor cost | $ | 89,000 |
| Raw material purchases | $ | 137,000 |
| Selling expenses | $ | 106,000 |
| Administrative expenses | $ | 40,000 |
| Manufacturing overhead applied to work in process | $ | 202,000 |
| Actual manufacturing overhead costs | $ | 222,000 |
| |
| Inventories | Beginning | Ending |
| Raw materials | $ | 8,300 | $ | 10,500 |
| Work in process | $ | 5,600 | $ | 20,500 |
| Finished goods | $ | 73,000 | $ | 25,800 |
| |
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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