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.