The following data from the just completed year are taken from the accounting records of Mason Company:   Sales $ 524,000 Direct labor cost $ 70,000 Raw material purchases $ 118,000 Selling expenses $ 140,000 Administrative expenses $ 63,000 Manufacturing overhead applied to work in process $ 90,000 Actual manufacturing overhead costs $ 80,000   Inventories Beginning Ending Raw materials $ 7,000 $ 15,000 Work in process $ 10,000 $ 5,000 Finished goods $ 20,000 $ 35,000   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. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following data from the just completed year are taken from the accounting records of Mason Company:

 

Sales $ 524,000
Direct labor cost $ 70,000
Raw material purchases $ 118,000
Selling expenses $ 140,000
Administrative expenses $ 63,000
Manufacturing overhead applied to work in process $ 90,000
Actual manufacturing overhead costs $ 80,000

 

Inventories Beginning Ending
Raw materials $ 7,000 $ 15,000
Work in process $ 10,000 $ 5,000
Finished goods $ 20,000 $ 35,000

 

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.

Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

 
 
 
 
Mason Company
Schedule of Cost of Goods Manufactured
       
Direct materials:      
       
       
Total raw materials available      
       
Direct materials used in production      
       
       
       
Total manufacturing costs added to production     0
Total manufacturing costs to account for     0
       
Cost of goods manufactured    

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
   
   
   
   
   
   
  $71,000

Prepare an income statement.

 
 
 
 
Mason Company
Income Statement
     
     
    0
Selling and administrative expenses:    
     
     
    $0
    $0
 
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
$
69
71,000
Transcribed Image Text: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 $ 69 71,000
Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
Direct materials:
Mason Company
Schedule of Cost of Goods Manufactured
Total raw materials available
Direct materials used in production
Total manufacturing costs added to production
Total manufacturing costs to account for
Cost of goods manufactured
0
Transcribed Image Text:Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. Direct materials: Mason Company Schedule of Cost of Goods Manufactured Total raw materials available Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured 0
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