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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 $ 210,000Purchases of raw materials $ 265,000Direct labor ? Administrative expenses $ 155,000Manufacturing overhead applied to work in process $ 371,000Actual manufacturing overhead cost $ 356,000Inventory balances at the beginning and end of the year were asfollows:Beginning of YearEnd of YearRaw Materials54,00036,000Work in Process31,000Finished Goods39,000The total manufacturing costs for the year were $680,000; thecost of goods available for sale totaled $720,000; the unadjustedcost of goods sold totaled $666,000; and the net operating incomewas $36,000. 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 the incomestatement and schedule of cost of goods sold first followed by theschedule of cost of goods manufactured.)