The following data from the just completed year are taken from the accounting records of mason company:

sales $ 660,000
direct labor cost $ 81,000
raw material purchases $ 140,000
selling expenses $ 103,000
administrative expenses $ 43,000
manufacturing overhead applied to work in process $ 201,000
actual manufacturing overhead costs $ 225,000
inventories beginning
of year end of
year
raw materials $ 8,500 $ 10,500
work in process $ 6,000 $ 21,000
finished goods $ 79,000 $
25,600

1) The cost of goods manufactured =$4058,000

2) The cost of goods sold = $482,400

3) The net income is $31,600

Explanation:

1)

In M company the sales of cost of goods manufactured are direct materials, Opening stock of raw materials , purchase of raw materials.

Less : closing stock of raw materials , raw materials used in production , direct labour cost , prime cost , add: manufacturing overhead , total manufacturing cost.

Add: opening work - in process, less :closing work - in process , cost of goods manufactured.

The cost of goods manufactured =$4058,000

2)

In M company the sales of cost of goods sold are direct materials,

Cost of goods manufactured, Add: opening work of finished goods, less : closing stock of finishing goods , unadjusted cost of goods sold , add: under applied overhead.

The cost of goods sold = $482,400

3)

In M company the income statement ,

Sales, less: cost of goods sold, gross margin, less: expenses, administrative expenses, selling expenses, net income .

The net income is $31,600

answer; the above statement/question is ( true);