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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$213,000Purchases of raw materials$266,000Direct labor?Administrative expenses$158,000Manufacturing overhead appliedto work in process$374,000Actual manufacturing overheadcost$355,000Inventory balances at the beginning and end of the year were asfollows:Beginning of YearEnd of YearRaw materials$54,000$37,000Work in process?$27,000Finished goods$36,000?The total manufacturing costs for the year were $675,000; thecost of goods available for sale totaled $740,000; the unadjustedcost of goods sold totaled $668,000; and the net operating incomewas $30,000. 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.)