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The following data from the just completed year are taken from the accounting records of Mason Company:
| | | |
| Sales | $ | 660,000 |
| Direct labor cost | $ | 81,000 |
| Raw material purchases | $ | 136,000 |
| Selling expenses | $ | 101,000 |
| Administrative expenses | $ | 44,000 |
| Manufacturing overhead applied to work in process | $ | 201,000 |
| Actual manufacturing overhead costs | $ | 226,000 |
| |
| Inventories | Beginning | Ending |
| Raw materials | $ | 8,900 | $ | 10,900 |
| Work in process | $ | 5,400 | $ | 20,100 |
| Finished goods | $ | 77,000 | $ | 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.
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