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 of Year End of Year 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.
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
Inventories
Beginning of
Year End of Year
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.
3. Prepare an income statement.
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