The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses $657,000 $84,000 $138,000 $102,000 $47,000 Manufacturing overhead applied to work in process $205,000 Actual manufacturing overhead costs $220,000 Inventories Beginning of Year End of Year Raw materials $8,500 $10,200 Work in process $5,200 $20,500 $25,100 Finished goods $78,000 Required: a. Prepare a schedule of the cost of goods manufactured. Assume all raw materials used in production were direct materials. b. Prepare a schedule of the cost of goods sold. c. Prepare an income statement.

The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses $657,000 $84,000 $138,000 $102,000 $47,000 Manufacturing overhead applied to work in process $205,000 Actual manufacturing overhead costs $220,000 Inventories Beginning of Year End of Year Raw materials $8,500 $10,200 Work in process $5,200 $20,500 $25,100 Finished goods $78,000 Required: a. Prepare a schedule of the cost of goods manufactured. Assume all raw materials used in production were direct materials. b. Prepare a schedule of the cost of goods sold. c. Prepare an income statement.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 6PA: During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of...

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During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
The records of Stone Inc. reflect the following data: Work in process, beginning of month4,000 units one-fourth completed at a cost of 2,500 for materials, 1,400 for labor, and 1,800 for overhead. Production costs for the monthmaterials, 130,000; labor, 70,000; and factory overhead, 82,000. Units completed and transferred to stock45,000. Work in process, end of month5,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)
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