The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses $657,000 $84,000 $138,000 $102,000 $47,000 Manufacturing overhead applied to work in process $205,000 Actual manufacturing overhead costs $220,000 Inventories Beginning of Year End of Year Raw materials $8,500 $10,200 Work in process $5,200 $20,500 $25,100 Finished goods $78,000 Required: a. Prepare a schedule of the cost of goods manufactured. Assume all raw materials used in production were direct materials. b. Prepare a schedule of the cost of goods sold. c. Prepare an income statement.
The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses $657,000 $84,000 $138,000 $102,000 $47,000 Manufacturing overhead applied to work in process $205,000 Actual manufacturing overhead costs $220,000 Inventories Beginning of Year End of Year Raw materials $8,500 $10,200 Work in process $5,200 $20,500 $25,100 Finished goods $78,000 Required: a. Prepare a schedule of the cost of goods manufactured. Assume all raw materials used in production were direct materials. b. Prepare a schedule of the cost of goods sold. c. Prepare an income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following data from the just completed year are taken from the accounting records of Mason
Company:
Sales
Direct labor cost
Raw material purchases
Selling expenses
Administrative expenses
$657,000
$84,000
$138,000
$102,000
$47,000
Manufacturing overhead applied to work in process $205,000
Actual manufacturing overhead costs
$220,000
Inventories
Beginning of Year End of Year
Raw materials
$8,500
$10,200
Work in process $5,200
$20,500
$25,100
Finished goods $78,000
Required:
a. Prepare a schedule of the cost of goods manufactured. Assume all raw materials used in
production were direct materials.
b. Prepare a schedule of the cost of goods sold.
c. Prepare an income statement.
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