Question

The following data from the just completed year are taken from the accounting records of Mason Company:
Assignment Print View Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 651,000 $ 89,000 $ 131,000 $ 107,000 $ 45,000 $ 206,000 $ 226,000 Inventories Raw materials Work in process Finished goods Beginning $ 8,500 $ 5,300 $ 78,000 Ending $ 10,700 $ 20,900 $ 25,300 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 Required 2 Required 3 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 Raw materials used in production Total manufacturing costs Cost of goods manufactured

Answer 1

8500 131000 139500 10700 MANSON COMPANY Schedule of Cost of goods Manufactured Direct Materials: Beginning Raw material Raw material purchased Total raw materials available for use Less: Ending Raw material Raw Materials used in production Direct labor Manufacturing over head applied to work in process Total manufacturing costs Add: Beginning Work in process Total cost of work in process Less:Ending Work in process Cost of goods Manufactured 128800 89000 206000 423800 5300 429100 20900 408200

MANSON COMPANY Schedule of Cost of goods sold Beginning finished goods Add: Cost of goods manufactured Cost of goods available for sale Less Ending finished goods Cost of goods sold Add: Underapplied MOH/ Less: Overapplied MOH Adjusted Cost of goods sold 78000 408200 486200 25300 460900 20000 480900 MANSON COMPANY Income Statement Sales Less: Cost of goods sold Gross profit Selling and administrative expenses: Selling expenses Administrative expenses Net Income 651000 4809001 170100 107000 45000 152000 18100