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.

Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...
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The following data from the just completed year are taken from the accounting records of Kenton
Company:

Sales $ 975,000
Direct labor cost $ 165,000
Raw material purchases $ 229,000
Selling expense $ 48,750
Administrative expenses $ 146,250
Manufacturing overhead applied to work in process $ 180,000
Actual manufacturing overhead costs $ 175,050
Inventories: Beginning Ending
Raw materials $ 18,000 $ 17,500
Work in process $ 20,000 $ 14,750
Finished goods $ 9,000 $ 11,000

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.

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