Reference no: EM132586085

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

Sales	$           975,000
Direct labor cost	$           165,000
Raw material purchases	$           229,0001
Selling expense	$             48,750
Administrative expenses	$           146,250
Manufacturing overhead applied to work in process	$              180,000
Actual manufacturing overhead costs	$               175,050
Inventories:		Beginning		Ending
Raw materials	$	18,000	$	17,500
Work in process	$	20,000	$	14,750
Finished goods	$	9,000	$	11,000

Required:

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

Question 2. Make a schedule of cost of goods sold. Assume that the company's under-applied or over-applied overhead is closed to Cost of Goods Sold.

Question 3. Make an income statement.