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In: AccountingSuperior Company provided the following data for the year endedDecember 31 (all raw materials are...Superior Company provided the following data for the year endedDecember 31 (all raw materials are used in production as directmaterials):Selling expenses$219,000Purchases of raw materials$263,000Direct labor?Administrative expenses$151,000Manufacturing overhead appliedto work in process$365,000Actual manufacturing overheadcost$354,000Inventory balances at the beginning and end of the year were asfollows:Beginning of YearEnd of YearRaw materials$50,000$34,000Work in process?$26,000Finished goods$32,000?The total manufacturing costs for the year were $685,000; thecost of goods available for sale totaled $750,000; the unadjustedcost of goods sold totaled $664,000; and the net operating incomewas $38,000. The company’s underapplied or overapplied overhead isclosed to Cost of Goods Sold.required:Prepare schedules of cost of goods manufactured and cost ofgoods sold and an income statement. (Hint: Prepare theincome statement and schedule of cost of goods sold first followedby the schedule of cost of goods manufactured.)