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Alexsandar Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials): Selling
Alexsandar Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Total actual manufacturing overhead costs $223,000 $269,000 ? 157,000 $342,000 371,000 $ Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year $ 62,000 ? End of Year $30,600 $ 37,600 $32,000 ? The total manufacturing costs for the year were $691,000; the cost of goods available for sale totaled $731,000; the unadjusted cost of goods sold totaled $666,000; and the net operating income was $42,000. The company's overapplied or underapplied overhead is closed entirely to cost of goods sold. (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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