Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Income Statement COGS Schedule COGM Schedule Prepare an income statement for the year. Sales Cost of goods sold Gross margin Superior Company Income Statement $ 1,063,000 655,000 408,000 Selling and administrative expenses: Selling expenses Administrative expenses $220,000 156,000 Accounts payable Net operating income 376,000 $ 32,000 < Income Statement COGS Schedule > Problem 3-13 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO3-3] Superior Company provided the following data 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 Actual manufacturing overhead cost $ 220,000 $ 267,000 ? $ 156,000 $ 369,000 $ 354,000 Inventory balances at the beginning and end of the year were as follows: Beginning Ending Raw materials Work in process Finished goods $ 56,000 $ 31,000 ? $ 33,000 $ 36,000 ? The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $670,000; and the net operating income was $32,000. The company's 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.)