The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 659,000

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The Following Data From The Just Completed Year Are Taken From The Accounting Records Of Mason Company Sales 659 000 1 (121.14 KiB) Viewed 44 times

The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 659,000 $ 84,000 Direct labor cost Raw material purchases $ 136,000 Selling expenses $ 101,000 Administrative expenses $ 46,000 Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 221,000 $ 208,000 Beginning Ending Inventories Raw materials Work in process $ 8,200 $ 10, 200 $ 5,500 $ 20,900 Finished goods $ 79,000 $ 25,600 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 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. 3. Prepare an income statement.
Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Mason Company Schedule of Cost of Goods Sold
Prepare an income statement. Selling and administrative expenses: Mason Company Income Statement $ 0 0 0
Mason Company Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured 0 0
Osborn Manufacturing uses a predetermined overhead rate of $19.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $269,280 of total manufacturing overhead for an estimated activity level of 13,600 direct labor-hours. The company actually incurred $265,000 of manufacturing overhead and 13,100 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? 1. Manufacturing overhead by by 2. The gross margin would