Reference no: EM132767182

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

Sales$659,000

Direct labor cost $85,000

Raw material purchases. $140,000

Selling expenses. $109,000

Administrative expenses$42,000

Manufacturing overhead applied to work in process$202,000

Actual manufacturing overhead costs$220,000

Inventories                Beginning            Ending

Raw materials            $8,700                 $10,600

Work in process          $5,800               $20,800

Finished goods           $75,000.         $25,300

Required:

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.