70.2K
Verified Solution
Link Copied!
The following data from the just completed year are taken from the accounting records of Mason Company:
| Sales | $ 652,000 |
| Direct labor cost | $ 87,000 |
| Raw material purchases | $ 137,000 |
| Selling expenses | $ 104,000 |
| Administrative expenses | $ 41,000 |
| Manufacturing overhead applied to work in process | $ 228,000 |
| Actual manufacturing overhead costs | $ 209,000 |
| Inventories | Beginning | Ending |
| Raw materials | $ 8,300 | $ 10,400 |
| Work in process | $ 5,800 | $ 20,400 |
| Finished goods | $ 71,000 | $ 25,000 |
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.
Answer & Explanation
Solved by verified expert
