ACC 349 Keep Learning/newtonhelp.com

Page 32

separates responsibilities for authorizing transactions, recording transactions, and maintaining custody of the related assets

• Question 2 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

$ 87,000

Purchases of raw materials

$ 131,000

Manufacturing overhead

$ 208,000

Advertising expense

$ 46,000

Sales salaries

$ 102,000

Depreciation, office equipment $ 228,000 Beginning of the Year

End of the year

Inventories: Raw materials

$ 8,900

$10,100

Work in process

$ 5,400

$21,000

Finished goods

$76,000

$25,800

Required: Prepare a schedule of cost of goods manufactured. Prepare the cost of goods sold section of Mason Company’s income statement for the year.


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.