Income Statement COGS Schedule COGM Schedule Prepare a schedule of cost of goods sold. Superior Company Schedule of Cost of Goods Sold $ Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Less: Overapplied overhead Adjusted cost of goods sold 34,000 696,000 730,000 63,000 667,000 13,000 654,000 $ Income Statement COGS Schedule COGM Schedule Prepare an income statement for the year. Superior Company Income Statement Sales $ 1,064,000 654,000 410,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses $ 218,000 152,000 370,000 40,000 Net operating income $ 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 $ 218,000 $ 264,000 ? $ 152,000 $ 364,000 $ 351,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning $ 53,000 ? $ 34,000 Ending $ 40,000 $ 29,000 ? The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $667,000; and the net operating income was $40,000. 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.) 2) Use the information provided in connect for Superior Company and your completed work to write journal entries in good format for the following transactions. Note - The dollar values can be obtained from the given information as well as the required completed work for HW 2.1Q16. Ref. Account Debit Credit a) Raw Material purchased on account a b) Raw Material used as direct material b Project 2 Page 2 of 13 c) Recognition of direct labor owed to employees d) Application of overhead to work-in-process d e) Recognition of Cost of Goods Manufactured e f) Recognition of Sales Revenue f g) Recognition of Cost of Goods Sold g h) Incurrence of actual overhead costs (use "various to represent multiple accounts. h i) Clear the over/under applied overhead from the overhead account to COGS. i Income Statement COGS Schedule COGM Schedule Prepare a schedule of cost of goods manufactured. Superior Company Schedule of Cost Goods Manufactured Beginning work in process inventory $ 45,000 Direct materials: Beginning raw materials inventory 53,000 Add: Purchases of raw materials 264,000 Total raw materials available 317,000 40,000 Less: Ending raw materials inventory Direct materials used in production $ 277,000 Direct labor 39,000 364,000 Manufacturing overhead applied to work in process Total manufacturing costs added to production Total manufacturing costs to account for Less: Ending work in process inventory Cost of goods manufactured 680,000 725,000 29,000 $ 696,000