Question

The following data from the just completed year are taken from the accounting records of Mason Company:

Sales $ 660,000
Direct labor cost $ 81,000
Raw material purchases $ 140,000
Selling expenses $ 103,000
Administrative expenses $ 43,000
Manufacturing overhead applied to work in process $ 201,000
Actual manufacturing overhead costs $ 225,000
Inventories Beginning
of Year End of
Year
Raw materials $ 8,500 $ 10,500
Work in process $ 6,000 $ 21,000
Finished goods $ 79,000 $
25,600

Answer 1

1) The cost of goods manufactured =$4058,000

2) The cost of goods sold = $482,400

3) The net income is $31,600

Step-by-step explanation:

1)

In M company the sales of cost of goods manufactured are direct materials, Opening stock of raw materials , purchase of raw materials.

Less : closing stock of raw materials , raw materials used in production , direct labour cost , prime cost , add: manufacturing overhead , total manufacturing cost.

Add: opening work - in process, less :closing work - in process , cost of goods manufactured.

The cost of goods manufactured =$4058,000

2)

In M company the sales of cost of goods sold are direct materials,

Cost of goods manufactured, Add: opening work of finished goods, less : closing stock of finishing goods , unadjusted cost of goods sold , add: under applied overhead.

The cost of goods sold = $482,400

3)

In M company the income statement ,

Sales, less: cost of goods sold, gross margin, less: expenses, administrative expenses, selling expenses, net income .

The net income is $31,600