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Business
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Sales Direct labor cost. Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs Inventories Raw materials Work in process Finished goods Beginning $ 7,000 $ 10,000 $ 20,000 Ending $ 15,000 $ 5,000 $ 35,000 $ 524,000 $ 70,000 $ 118,000 $ 140,000 $ 63,000 $ 90,000 $ 80,000 equired: Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. . Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of oods Sold. Prepare an income statement.

Sales Direct labor cost. Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs Inventories Raw materials Work in process Finished goods Beginning $ 7,000 $ 10,000 $ 20,000 Ending $ 15,000 $ 5,000 $ 35,000 $ 524,000 $ 70,000 $ 118,000 $ 140,000 $ 63,000 $ 90,000 $ 80,000 equired: Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. . Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of oods Sold. Prepare an income statement.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following data from the just completed year are taken from the accounting records of Mason Company: $ 524,000 $ 70,000 $ 118,000 $ 140,000 $ 63,000 $ 90,000 $ 80,000 Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs Inventories Raw materials. Work in process Finished goods 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. Complete this question by entering your answers in the tabs below. Required 1 Beginning Ending $ 7,000 $ 15,000 $ 10,000 $5,000 $ 20,000 $ 35,000 Required 2 Prepare an income statement. Administrative expense Required 3 Net operating income Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Mason Company Income Statement $ 140,000 $ 524,000 270,000 254,000 63,000 $ 203,000 $ 51,000
Transcribed Image Text:The following data from the just completed year are taken from the accounting records of Mason Company: $ 524,000 $ 70,000 $ 118,000 $ 140,000 $ 63,000 $ 90,000 $ 80,000 Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs Inventories Raw materials. Work in process Finished goods 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. Complete this question by entering your answers in the tabs below. Required 1 Beginning Ending $ 7,000 $ 15,000 $ 10,000 $5,000 $ 20,000 $ 35,000 Required 2 Prepare an income statement. Administrative expense Required 3 Net operating income Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Mason Company Income Statement $ 140,000 $ 524,000 270,000 254,000 63,000 $ 203,000 $ 51,000
The following data from the just completed year are taken from the accounting records of Mason Company: $ 524,000 $ 70,000 $ 118,000 $ 140,000 $ 63,000 $ 90,000 $ 80,000 Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs Inventories Raw materials Work in process Finished goods Beginning $ 7,000 $ 10,000 $ 20,000 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. Ending $ 15,000 $ 5,000 $ 35,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Mason Company Schedule of Cost of Goods Sold Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Add: Overapplied overhead Adjusted cost of goods sold $ $ 20,000 275,000 295,000 35,000 260,000 10,000 270,000
Transcribed Image Text:The following data from the just completed year are taken from the accounting records of Mason Company: $ 524,000 $ 70,000 $ 118,000 $ 140,000 $ 63,000 $ 90,000 $ 80,000 Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs Inventories Raw materials Work in process Finished goods Beginning $ 7,000 $ 10,000 $ 20,000 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. Ending $ 15,000 $ 5,000 $ 35,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Mason Company Schedule of Cost of Goods Sold Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Add: Overapplied overhead Adjusted cost of goods sold $ $ 20,000 275,000 295,000 35,000 260,000 10,000 270,000
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The statement of cost of goods manufactured is prepared to estimate the cost of goods that are finished during the period. The statement of cost of goods sold is prepared to estimate the cost of goods that are sold during the period. 

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