19.5k views
2 votes
Check my work Check My Work button is not enabled Item 4 Item 4 1 points Item Skipped The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 660,000 Direct labor cost $ 86,000 Raw material purchases $ 135,000 Selling expenses $ 109,000 Administrative expenses $ 46,000 Manufacturing overhead applied to work in process $ 205,000 Actual manufacturing overhead costs $ 225,000 Inventories Beginning Ending Raw materials $ 8,200 $ 10,800 Work in process $ 5,000 $ 20,600 Finished goods $ 74,000 $ 25,900 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.

User Guitarman
by
7.0k points

1 Answer

1 vote

Answer:

Instructions are listed below

Step-by-step explanation:

Giving the following information:

Sales $ 660,000

Direct labor cost $ 86,000

Raw material purchases $ 135,000

Selling expenses $ 109,000

Administrative expenses $ 46,000

Manufacturing overhead applied to work in process $ 205,000 Actual manufacturing overhead costs $ 225,000

Inventories Beginning Ending Raw materials $ 8,200 $ 10,800

Work in process $ 5,000 $ 20,600

Finished goods $ 74,000 $ 25,900

1) cost of goods manufactured:

Beginning Work in process $ 5,000

Inventories Beginning Raw materials $ 8,200

Raw material purchases $ 135,000

Ending inventories Raw materials $ 10,800 (-)

Direct labor cost $ 86,000

Manufacturing overhead applied to work in process $ 205,000

Ending Work in process $ 20,600 (-)

Total= $407,800

2) Cost of goods sold:

Beginning Finished goods $ 74,000

cost of goods manufactured $407,800

Ending finished goods $ 25,900 (-)

Underapplied overhead= 20,000 (+)

Total COGS= $475,900

3) Income statement:

Sales= 660,000

COGS= 475,900

Gross income= $184,100

Selling expenses $ 109,000

Administrative expenses $ 46,000

Net operating income= $29,100

User Brokentypewriter
by
7.5k points