EXERCISE 2–11 Preparing a Schedule of Costs of Goods Manufactured and Cost of Goods Sold[LO2, LO4, LO5]The following cost and inventory data are taken from the accounting records of Mason Companyfor the year just completed:Costs incurred:$ 70,000Direct labor cost .....Purchases of raw materialsManufacturing overheadAdvertising expense..Sales salaries...$118,000$ 80,000$ 90,000$50,000Depreciation, office equipment$3,000Beginning ofEnd ofthe Yearthe YearInventories:Raw materials$ 15,000$7,000Work in processFinished goods.$ 10,000$ 20,000$5,000$ 35,000Required:1. Prepare a schedule of cost of goods manufactured.2. Prepare the cost of goods sold section of Mason Company's income statement for the year.

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Description: EXERCISE 2–11 Preparing a Schedule of Costs of Goods Manufactured and Cost of Goods Sold[LO2, LO4, LO5]The following cost and inventory data are taken from the accounting records of Mason Companyfor the year just completed:Costs incurred:$ 70,000Dir

Formula: Cost of Goods sold = Beginning finished goods inventory + cost of goods manufactured -…

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The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: Costs incurred: Direct labor cost.... $70,000 Purchases of raw materials $118,000 Manufacturing overhead Advertising expense. Sales salaries..... Depreciation, office equipment $ 80,000 $ 90,000 $50,000 $3,000 Beginning of the Year End of the Year Inventories: Raw materials $7,000 $15,000 Work in process. $ 10,000 Finished goods.. $5,000 $35,000 $20,000 Required: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare the cost of goods sold section of Mason Company's income statement for the year.

The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: Costs incurred: Direct labor cost.... $70,000 Purchases of raw materials $118,000 Manufacturing overhead Advertising expense. Sales salaries..... Depreciation, office equipment $ 80,000 $ 90,000 $50,000 $3,000 Beginning of the Year End of the Year Inventories: Raw materials $7,000 $15,000 Work in process. $ 10,000 Finished goods.. $5,000 $35,000 $20,000 Required: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare the cost of goods sold section of Mason Company's income statement for the year.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5.26EX

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