Answered Essay: The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Ra

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 Manufacturing overhead applied to work in process Actual manufacturing overhead costs 524,000 $ 70,000 $ 118,000 140,000 S 63,000 90,000 $ 80,000 Beginning End of Year Inventories Raw materials Work in process Finished goods of Year $ 7,000 S 15,000 $ 10,000 S 5,000 $ 20,000 S 35,000 Required 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

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 Manufacturing overhead applied to work in process Actual manufacturing overhead costs 524,000 $ 70,000 $ 118,000 140,000 S 63,000 90,000 $ 80,000 Beginning End of Year Inventories Raw materials Work in process Finished goods of Year $ 7,000 S 15,000 $ 10,000 S 5,000 $ 20,000 S 35,000 Required 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

Expert Answer

 

Solution:

1. Schedule of cost of good manufactured:

Direct material:
Beginning raw material inventory $7,000
Add: Purchase of raw material $118,000
Raw material available for use $125,000
Deduct: ending raw material inventory $15,000
Raw material used in production $110,000
Direct labour $70,000
Manufacturing Overhead applied $90,000
Total manufacturing cost $270,000
Add beginning WIP $10,000
$280,000
Deduct: ending WIP $5,000
Cost of good manufactured $275,000

2.

Cost of good sold:

Beginning finished good inventory $20,000
Add: cost of good manufactured $275,000
Good available for sale $295,000
Deduct: ending finished goods inventory $35,000
Unadjusted cost of good sold $260,000
Deduct: Overstated Overhead(90000-80000) $10,000
Adjusted cost of good sold $250,000

3. Income statement:

Sales $524,000
Less: adjusted cost of good sold $250,000
Gross margin $274,000
Selling and administrative expense:
Selling expense $140,000
Administrative expense $63,000 $203,000
Net operating income $71,000
Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

HOW OUR ONLINE ESSAY WRITING SERVICE WORKS

Let us write that nagging essay.

STEP 1

Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.

STEP 2

Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.

STEP 3

Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.

STEP 4

Receive your Paper

After Editing, your paper will be sent to you via email.