The following data from the just completed year are taken from the accounting records of Mason…
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Question “The following data from the just completed year are taken from the accounting records of Mason…”
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 $652,000 $ 89,000 $137,000 $103,000 $ 49,000 $208,000 $225,000 Inventories Beginning Ending Raw materials $ 8,400 $10,200 Work in $ 5,000 $20,200 process Finished goods $78,000 $25,800 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. Required Required Required Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. Mason Company Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Raw materials used in production Total manufacturing costs Cost of goods manufactured _ Dacia Docuired
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 $652,000 $ 89,000 $137,000 $103,000 $ 49,000 $208,000 $225,000 Inventories Beginning Ending Raw materials $ 8,400 $10,200 Work in $ 5,000 $20,200 process Finished goods $78,000 $25,800 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. Required Required Required 3 Prepare a schedule of cost of goods sold. Assume that the company’s underapplied or overapplied overhead is closed to Cost of Goods Sold. Mason Company Schedule of Cost of Goods Sold < Required 1 Required 3 >
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 $652,000 $ 89,000 $137,000 $103,000 $ 49,000 $208,000 $225,000 Inventories Beginning Ending Raw materials $ 8,400 $10,200 Work in $ 5,000 $20,200 process Finished goods $78,000 $25,800 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. Required Required Required Prepare an income statement. Mason Company Income Statement Selling and administrative expenses: $ < Required 2 Required 3)
Answer
Answer: MASON COMPANY
Schedule of Goods Costs
Direct Materials: | ||
Starter raw materials inventory | $8,400 | |
Add: Purchases of raw materials | $137,000 | |
Available raw materials | $145,400 | |
We have less: Ending raw material inventory | $10,200 | |
Production materials | $135,200 | |
Plus: Direct labor | $89,000 | |
Add:Manufacturing overhead | $208,000 | |
Total manufacturing costs | $432,200 | |
Add: Start work in process inventory | $5,000 | |
$437,200 | ||
We are now completing the inventory process. | $20,200 | |
Cost of goods manufactured | $417,000 |
MASON COMPANY
Schedule of Goods Sold Prices
Beginning finished goods inventory | $78,000 |
Add the Cost of Goods Manufactured | $417,000 |
Available for Sale: | $495,000 |
Less: Ending finished goods inventory | 25,800 |
Unadjusted Cost of Goods Sold | $469,200 |
Add: Overapplied overhead | $17,000 |
Adjusted cost of goods sold | $486,200 |
Underapplied overhead = Actual manufacturing overhead costs-Manufacturing overhead used to work in process
=$225,000-$208,000
=$17,000
MASON COMPANY
Income Statement
Sales | $652,000 | |
Lower: The cost of goods sold | $486,200 | |
Gross Margin | $165,800 | |
Lower Selling and Administrative expenses | ||
Selling expenses | $103,000 | |
Administrative expenses | $49,000 | |
Total Selling and Administrative Costs | $152,000 | |
Net Operating Income | $13,800 |
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