Question

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

Sales $660,000
Direct labor cost $81,000
Raw material purchases $140,000
Selling expenses $103,000
Administrative expenses $43,000
Manufacturing overhead applied to work in process $201,000
Actual manufacturing overhead costs $225,000

Inventories Beginning of Year End of Year
Raw materials $8,500 $10,500
Work in process $6,000 $21,000
Finished goods $79,000 $25,600

Required:
a. Prepare a schedule of cost of goods manufactured.
b. Prepare a schedule of cost of goods sold.

Answer 1

Answer:

See below

Explanation:

a. Schedule of cost of goods manufactured.

Opening raw materials $8,500

Add raw material purchases $140,000

Less ending raw materials $10,500

Direct material used $138,000

Direct labor cost $81,000

Manufacturing overhead applied to work in process $201,000

Total manufacturing costs $420,000