Homework SourseThe following data from the just completed year are taken fr
The following data from the just completed year are taken from the accounting records of Mason Company:
Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
Prepare a schedule of cost of goods sold.
Prepare an income statement.
| The following data from the just completed year are taken from the accounting records of Mason Company: |
Solution
2.Prepare a schedule of cost of goods sold.
3.Prepare an income statement.
| Mason Company | ||
| Schedule of Cost of Goods Manufactured | ||
| Direct materials: | ||
| Beginning raw materials inventory | $8,900 | |
| Add: Purchases of raw materials | 136,000 | |
| Raw materials available for use | 144,900 | |
| Less: Ending raw materials inventory | 10,800 | |
| Raw materials used in production | $134,100 | |
| Direct labor | 88,000 | |
| Manufacturing overhead | 204,000 | |
| Total manufacturing costs | 426,100 | |
| Add: Beginning work in process inventory | 5,300 | |
| 431,400 | ||
| Less: Ending work in process inventory | 20,300 | |
| Cost of goods manufactured | $411,100 |
