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Superior Company provided the following data for the year endedDecember 31 (all raw materials are used in production as directmaterials):Selling expenses$211,000Purchases of raw materials$265,000Direct labor?Administrative expenses$152,000Manufacturing overhead applied to work in process$365,000Actual manufacturing overhead cost$354,000Inventory balances at the beginning and end of the year were asfollows:Beginning of YearEnd of YearRaw materials$52,000$39,000Work in process?$31,000Finished goods$33,000?The total manufacturing costs for the year were $685,000; thecost of goods available for sale totaled $725,000; the unadjustedcost of goods sold totaled $660,000; and the net operating incomewas $34,000. 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.)