EXERCISE 2–11 Preparing a Schedule of Costs of Goods Manufactured and Cost of Goods Sold[LO2, LO4, LO5]The following cost and inventory data are taken from the accounting records of Mason Companyfor the year just completed:Costs incurred:$ 70,000Direct labor cost .....Purchases of raw materialsManufacturing overheadAdvertising expense..Sales salaries...$118,000$ 80,000$ 90,000$50,000Depreciation, office equipment$3,000Beginning ofEnd ofthe Yearthe YearInventories:Raw materials$ 15,000$7,000Work in processFinished goods.$ 10,000$ 20,000$5,000$ 35,000Required:1. Prepare a schedule of cost of goods manufactured.2. Prepare the cost of goods sold section of Mason Company's income statement for the year.

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Description: EXERCISE 2–11 Preparing a Schedule of Costs of Goods Manufactured and Cost of Goods Sold[LO2, LO4, LO5]The following cost and inventory data are taken from the accounting records of Mason Companyfor the year just completed:Costs incurred:$ 70,000Dir

Formula: Cost of Goods sold = Beginning finished goods inventory + cost of goods manufactured -…

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The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: Costs incurred: Direct labor cost.... $70,000 Purchases of raw materials $118,000 Manufacturing overhead Advertising expense. Sales salaries..... Depreciation, office equipment $ 80,000 $ 90,000 $50,000 $3,000 Beginning of the Year End of the Year Inventories: Raw materials $7,000 $15,000 Work in process. $ 10,000 Finished goods.. $5,000 $35,000 $20,000 Required: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare the cost of goods sold section of Mason Company's income statement for the year.

The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: Costs incurred: Direct labor cost.... $70,000 Purchases of raw materials $118,000 Manufacturing overhead Advertising expense. Sales salaries..... Depreciation, office equipment $ 80,000 $ 90,000 $50,000 $3,000 Beginning of the Year End of the Year Inventories: Raw materials $7,000 $15,000 Work in process. $ 10,000 Finished goods.. $5,000 $35,000 $20,000 Required: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare the cost of goods sold section of Mason Company's income statement for the year.

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 15.9EX: Classifying costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and...

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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EXERCISE 2–11 Preparing a Schedule of Costs of Goods Manufactured and Cost of Goods Sold
[LO2, LO4, LO5]
The following cost and inventory data are taken from the accounting records of Mason Company
for the year just completed:
Costs incurred:
$ 70,000
Direct labor cost .....
Purchases of raw materials
Manufacturing overhead
Advertising expense..
Sales salaries...
$118,000
$ 80,000
$ 90,000
$50,000
Depreciation, office equipment
$3,000
Beginning of
End of
the Year
the Year
Inventories:
Raw materials
$ 15,000
$7,000
Work in process
Finished goods.
$ 10,000
$ 20,000
$5,000
$ 35,000
Required:
1. Prepare a schedule of cost of goods manufactured.
2. Prepare the cost of goods sold section of Mason Company's income statement for the year.

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