Sales ... $524,000 Direct labor cost ... Raw material purchases.. Selling expenses..... Administrative expenses.... Manufacturing overhead applied to work in process. Actual manufacturing overhead costs... $70,000 $118,000 $140,000 $63,000 $90,000 $80,000 Inventories Beginning Ending Raw materials... Work in process. Finished goods $7,000 $10,000 $20,000 $15,000 ..... $5,000 $35,000 .... ....

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EB: Crafts 4 All has these costs associated with production of 12,000 units of accessory products:...
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Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement

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

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.

 

Sales ...
$524,000
Direct labor cost ...
Raw material purchases..
Selling expenses.....
Administrative expenses....
Manufacturing overhead applied to work in process.
Actual manufacturing overhead costs...
$70,000
$118,000
$140,000
$63,000
$90,000
$80,000
Inventories
Beginning
Ending
Raw materials...
Work in process.
Finished goods
$7,000
$10,000
$20,000
$15,000
.....
$5,000
$35,000
....
....
Transcribed Image Text:Sales ... $524,000 Direct labor cost ... Raw material purchases.. Selling expenses..... Administrative expenses.... Manufacturing overhead applied to work in process. Actual manufacturing overhead costs... $70,000 $118,000 $140,000 $63,000 $90,000 $80,000 Inventories Beginning Ending Raw materials... Work in process. Finished goods $7,000 $10,000 $20,000 $15,000 ..... $5,000 $35,000 .... ....
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