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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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