the following data from the just - completed year are taken from the accounting records of mason…

the following data from the just - completed year are taken from the accounting records of mason company.\ninventories: beginning work in process $7,000, ending work in process $15,000, beginning finished goods $10,000, ending finished goods $20,000\nraw materials: purchases $118,000, used in production (assume all were direct materials) $140,000, beginning $63,000, ending $90,000\ndirect labor cost $76,000\nselling expenses $80,000\nadministrative expenses $524,000\nactual manufacturing overhead costs\nmanufacturing overhead applied to work in process\nrequired:\n1. prepare a schedule of cost of goods manufactured. assume all raw materials used in production were direct materials.\n2. prepare a schedule of cost of goods sold. assume that the companys underapplied or overapplied overhead is closed to cost of goods sold.\n3. prepare an income statement.\ncomplete this question by entering your answers in the tabs below.\nschedule of cost of goods sold\nmason company\nbeginning finished goods inventory\nadd: cost of goods manufactured\ncost of goods available for sale\nless: ending finished goods inventory\nunadjusted cost of goods sold\nless: overapplied overhead\nadjusted cost of goods sold\nrequired 1\nrequired 2\nrequired 3

the following data from the just - completed year are taken from the accounting records of mason company.\ninventories: beginning work in process $7,000, ending work in process $15,000, beginning finished goods $10,000, ending finished goods $20,000\nraw materials: purchases $118,000, used in production (assume all were direct materials) $140,000, beginning $63,000, ending $90,000\ndirect labor cost $76,000\nselling expenses $80,000\nadministrative expenses $524,000\nactual manufacturing overhead costs\nmanufacturing overhead applied to work in process\nrequired:\n1. prepare a schedule of cost of goods manufactured. assume all raw materials used in production were direct materials.\n2. prepare a schedule of cost of goods sold. assume that the companys underapplied or overapplied overhead is closed to cost of goods sold.\n3. prepare an income statement.\ncomplete this question by entering your answers in the tabs below.\nschedule of cost of goods sold\nmason company\nbeginning finished goods inventory\nadd: cost of goods manufactured\ncost of goods available for sale\nless: ending finished goods inventory\nunadjusted cost of goods sold\nless: overapplied overhead\nadjusted cost of goods sold\nrequired 1\nrequired 2\nrequired 3

Answer

Explanation:

Step1: Calculate cost of goods manufactured

Cost of goods manufactured = Beginning work - in - process+Direct materials used+Direct labor+Manufacturing overhead - Ending work - in - process. Direct materials used = Beginning raw materials+Raw material purchases - Ending raw materials. Beginning raw materials = $7,000$, raw material purchases = $118,000$, ending raw materials = $15,000$. So direct materials used = $7000 + 118000-15000=110,000$. Direct labor = $76,000$, manufacturing overhead applied to work - in - process = $90,000$, beginning work - in - process = $10,000$, ending work - in - process = $20,000$. Cost of goods manufactured = $10000 + 110000+76000 + 90000-20000=266,000$.

Step2: Calculate cost of goods available for sale

Cost of goods available for sale = Beginning finished goods+Cost of goods manufactured. Beginning finished goods = $24,000$, cost of goods manufactured = $266,000$. So cost of goods available for sale = $24000 + 266000=290,000$.

Step3: Calculate unadjusted cost of goods sold

Unadjusted cost of goods sold = Cost of goods available for sale - Ending finished goods. Ending finished goods = $35,000$, cost of goods available for sale = $290,000$. So unadjusted cost of goods sold = $290000 - 35000=255,000$.

Step4: Adjust for over/under - applied overhead

Assume actual manufacturing overhead costs = $80,000$, manufacturing overhead applied = $90,000$. Over - applied overhead = $90000 - 80000 = 10,000$. Adjusted cost of goods sold = Unadjusted cost of goods sold - Over - applied overhead. Adjusted cost of goods sold = $255000-10000 = 245,000$.

Schedule of Cost of Goods Sold

Particulars Amount
Beginning finished goods inventory $24,000$
Add: Cost of goods manufactured $266,000$
Cost of goods available for sale $290,000$
Less: Ending finished goods inventory $35,000$
Unadjusted cost of goods sold $255,000$
Less: Over - applied overhead $10,000$
Adjusted cost of goods sold $245,000$

Answer:

See the schedule of cost of goods sold above for details.