The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed:
Costs incurred:
Direct labor cost .......................................... $70,000
Purchases of raw materials ......................... $118,000
Manufacturing overhead ............................. $80,000
Advertising expense .................................... $90,000
Sales salaries .............................................. $50,000
Depreciation, office equipment .................... $3,000
Beginning of End of
the Year the Year
Inventories:
Raw materials .................... $7,000 $15,000
Work in process ................. $10,000 $5,000
Finished goods ................... $20,000 $35,000
Required:
1. Prepare a schedule of cost of goods manufactured.
2. Prepare the cost of goods sold section of Mason Company's income statement for the year.