E Course Modules RLST 1 X Y SmartBook O Ch 2 Homework Ch 2 H

E Course Modules: RLST 1 X Y SmartBook O Ch. 2 Homework Ch 2 Homenarik * C Cheg Study Guided se X VG how do you seenshot x. X c Chegg Study | Guided S. XV G how do you screenshot = x Anthony - o x *A® @ : E C O ezto.mheducation.com/hm.tpx Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 652,000 $ 88.000 $ 139.000 $ 104,000 $ 50.000 $ 208.000 $ 221,000 |Inventories Raw materials Work in process Finished goods Beginning End of of Year Year $ 8,100 $ 10,500 $ 5,800 $ 20,500 $ 75,000 $ 25.300 Required: 1. 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: Raw materials available for use Raw materials used in production Total manufacturing costs LAVO-O 1222018 LITT OVolges Gnl 8:49 PM

Solution

Answer:1

Schedule of Cost of Goods Manufactured:

Answer:2

Schedule of Cost of Goods sold:

Working Note:

Note 1:

Underapplied overhead = Actual manufacturing overhead costs - Manufacturing overhead applied to work in process

= $221000 - $208000

= $13000

Answer:3

Income Statement:

Mason Company
Schedule of Cost of Goods manufactured
Direct Materials:
Beginning raw material inventory	$       8,100.00
Add: Purchases of raw materials	$ 1,39,000.00
Raw materials available for use	$ 1,47,100.00
Less: Ending raw materials inventory	$     10,500.00
Raw materials used in production (a)		$    1,36,600.00
Direct labour (b)		$       88,000.00
Manufacturing overhead cost applied to work in process ©		$    2,08,000.00
Total manufacturing costs (a+b+c)		$    4,32,600.00
Add: Beginning work in process inventory		$          5,800.00
		$    4,38,400.00
Less: Ending work in process inevntory		$       20,500.00
Cost of goods manufactured		$    4,17,900.00