The following data from the just completed year are taken from the accounting records of Mason Company: $ 524,000 $70,000 $ 118,000 $ 140,000 $ 63,000 $ 90,000 $ 80,000 Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs Inventories Raw materials Work in process Finished goods Beginning $ 7,000 $ 10,000 $ 20,000 Ending $ 15,000 $5,000 $ 35,000 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. Complete this question by entering your answers in the tabs below.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 7P: Selected account balances and transactions of Titan Foundry Inc. follow: May Transactions: a....
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The following data from the just completed year are taken from the accounting records of Mason Company:
Sales
Direct labor cost
Raw material purchases
Selling expenses
Administrative expenses
Manufacturing overhead applied to work in process
Actual manufacturing overhead costs
Inventories
Raw materials.
Work in process
Finished goods
Beginning
$ 7,000
$ 10,000
$ 20,000
Required 1 Required 2 Required 3
Ending
$ 15,000
$ 5,000
$ 35,000
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.
Complete this question by entering your answers in the tabs below.
Mason Company
Schedule of Cost of Goods Manufactured
Beginning work in process inventory
Direct materials:
Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
Purchases of raw materials
Add: Purchases of raw materials
Total raw materials available
Less: Ending raw materials inventory
Direct materials used in production
$ 524,000
$ 70,000
$ 118,000
$ 140,000
$ 63,000
$ 90,000
$ 80,000
$
7,000
118,000
125,000
15,000
$ 10,000
Transcribed Image Text:ces The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs Inventories Raw materials. Work in process Finished goods Beginning $ 7,000 $ 10,000 $ 20,000 Required 1 Required 2 Required 3 Ending $ 15,000 $ 5,000 $ 35,000 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. Complete this question by entering your answers in the tabs below. Mason Company Schedule of Cost of Goods Manufactured Beginning work in process inventory Direct materials: Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. Purchases of raw materials Add: Purchases of raw materials Total raw materials available Less: Ending raw materials inventory Direct materials used in production $ 524,000 $ 70,000 $ 118,000 $ 140,000 $ 63,000 $ 90,000 $ 80,000 $ 7,000 118,000 125,000 15,000 $ 10,000
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