The following data from the just completed year are taken from the accounting re

Question

The following data from the just completed year are taken from the accounting records of Mason Company:

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.

   Sales $ 652,000 Direct labor cost $ 87,000 Raw material purchases $ 131,000 Selling expenses $ 107,000 Administrative expenses $ 45,000 Manufacturing overhead applied to work in process $ 208,000 Actual manufacturing overhead costs $ 227,000

Explanation / Answer

Schedule of Cost of Goods Manufactured, Cost of Goods Sold and Statement of Income

Particular Amount ($) Answers Opening Raw Materials 8500 Raw Material Purchased 131000 Closing Raw Materials (10200) Raw Material Consumed 129300 Direct Labour Cost 87000 Prime Cost 216300 Opening Work In Process 5700 Closing Work In Process (20000) Actual Manufacturing Overhead Costs 227000 Cost of Goods Manufactured 429000 429000 Opening Finished Goods 71000 Closing Finished Goods (25200) Cost of Goods Sold 474800 474800 Selling Expenses 107000 Administrative Expenses 45000 Cost of Sales 626800 Income (Sales-Cost of Sales) 25200 25200 Sales 652000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.