Superior Company provided the following data for the year ended December 31 (all raw materials...
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Accounting
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):
Selling expenses
$ 219,000
Purchases of raw materials
$ 263,000
Direct labor
?
Administrative expenses
$ 153,000
Manufacturing overhead applied to work in process
$ 370,000
Actual manufacturing overhead cost
$ 354,000
Inventory balances at the beginning and end of the year were as follows:
Beginning
Ending
Raw materials
$ 50,000
$ 33,000
Work in process
?
$ 31,000
Finished goods
$ 33,000
?
The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $668,000; and the net operating income was $35,000. The companys underapplied or overapplied overhead is closed to Cost of Goods Sold.
Required:
Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)
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