The following data from the just completed year are taken from the accounting records of Kenton Company: Sales $ 975,000 Direct labor cost $ 165,000 Raw material purchases $ 229,000 Selling expense $ 48,750 Administrative expenses $ 146,250 Manufacturing overhead applied to work in process $ 180,000 Actual manufacturing overhead costs $ 175,050 Inventories: Beginning Ending Raw materials $ 18,000 $ 17,500 Work in process $ 20,000 $ 14,750 Finished goods $ 9,000 $ 11,000 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following data from the just completed year are taken from the accounting records of Kenton Company:
Sales $ 975,000
Direct labor cost $ 165,000
Raw material purchases $ 229,000
Selling expense $ 48,750
Administrative expenses $ 146,250
Manufacturing overhead applied to work in process $ 180,000
Actual manufacturing overhead costs $ 175,050
Inventories: Beginning Ending

Raw materials $ 18,000 $ 17,500
Work in process $ 20,000 $ 14,750
Finished goods $ 9,000 $ 11,000
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.

The following data from the just completed year are taken from the accounting records of Kenton
Company:
Sales
$
975,000
Direct labor cost
165,000
Raw material purchases
229,000
Selling expense
$
48,750
Administrative expenses
|$
146,250
Manufacturing overhead applied to work in process $
180,000
Actual manufacturing overhead costs
2$
175,050
Inventories:
Beginning
Ending
Raw materials
2$
18,000 $
17,500
Work in process
$
20,000 $
14,750
Finished goods
$
9,000 $
11,000
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.
Transcribed Image Text:The following data from the just completed year are taken from the accounting records of Kenton Company: Sales $ 975,000 Direct labor cost 165,000 Raw material purchases 229,000 Selling expense $ 48,750 Administrative expenses |$ 146,250 Manufacturing overhead applied to work in process $ 180,000 Actual manufacturing overhead costs 2$ 175,050 Inventories: Beginning Ending Raw materials 2$ 18,000 $ 17,500 Work in process $ 20,000 $ 14,750 Finished goods $ 9,000 $ 11,000 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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