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.

Sales

$

654,000

  Direct labor cost

$

85,000

  Raw material purchases

$

135,000

  Selling expenses

$

103,000

  Administrative expenses

$

41,000

  Manufacturing overhead applied to work in process

$

206,000

  Actual manufacturing overhead costs

$

226,000

   

  Inventories

Beginning
of Year

End of
Year

  Raw materials

$

8,600    

$

10,300   

  Work in process

$

5,800    

$

20,000   

  Finished goods

$

72,000    

$

25,200   

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.

Explanation / Answer

Cost of Goods Manufactured

Cost OF Goods Sold

Income Statement

Direct MAterial used Beginning RAw Material Inventory 8600 Add Puchases 135000 Less Ending RAw Material Inventory 10300 Total RAw MAterial used 133300 Direct LAbour 85000 MAnufacturing Overhead 206000 Total Manufacturing COSt 424300 Add Beginning W,I.P 5800 Less Ending W.I.P 20000 Cost of Goods MAnufactured 410100

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