Reference no: EM132755890

Direct labor cost $ 70,000

Raw material purchases $ 118,000

Selling expenses $ 140,000

For numbers 1,2,5

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

Sales $ 524,000

Administrative expenses $ 63,000

Manufacturing overhead applied to work in process $ 90,000

Actual manufacturing overhead costs $ 80,000

Inventories             Beginning            Ending

Raw materials        $ 7,000           $ 15,000

Work in process     $ 10,000            $ 5,000

Finished goods       $ 20,000             $ 35,000

Complete the following...

Problem 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

Problem 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.

Problem 3. Prepare an income statement.