1 Prepare a schedule of cost of goods manufactured Assume al

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.

Exercise 3-6 Schedules ot Cost ot Goods Manutactured and Cost ot Goods Sold; Income Statement [LO3-3] 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 Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 659,0ee $ 90,0ee $ 134,0e0 $ 105,000 $ 43,000 $ 209,000 $ 225,000 Beginning Ending Inventories Raw materials Work in process Finished goods $ 8,500 $ 10,300 $ 5,600 21,000 26,000 $ 70,000 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 Goods Sold. 3. Prepare an income statement. Complete this auestion bv enterina vour answers in the tabs below. K Prex3 of 5 Next >

Solution

Mason Company Schedule of Cost of Goods manufactured Direct Materials Beginning raw materials $8,500 Less: closing inventory $1,34,000 Total raw materials available $1,42,500 Closing raw materials $10,300 Raw materials used in production $1,32,200 Direct labor cost $90,000 Manufacturing overhead applied $2,09,000 Total manufacturing costs $4,31,200 Add:Beginning WIP $5,600 Less: closing WIP $21,000 Cost of goods manufactured $4,15,800 Mason Company Schedule of Cost of Goods Sold Opening inventory $70,000 Cost of goods manufactured $4,15,800 Less: closing inventory $26,000 Cost of goods sold $4,59,800 Mason Company Income Statement Sales $6,59,000 Less: Cost of goods sold $4,59,800 Gross profit $1,99,200 Selling and admin expenses selling expenses $1,05,000 Administrative expenses $43,000 Total expenses $1,48,000 Net profit $51,200