Item1

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Item 1

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):

Selling expenses	$ 211,000
Purchases of raw materials	$ 269,000
Direct labor	?
Administrative expenses	$ 152,000
Manufacturing overhead applied to work in process	$ 368,000
Actual manufacturing overhead cost	$ 356,000

Inventory balances at the beginning and end of the year were as follows:

	Beginning	Ending
Raw materials	$ 59,000	$ 33,000
Work in process	?	$ 24,000
Finished goods	$ 34,000	?

The total manufacturing costs added to production for the year were $685,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $660,000; and the net operating income was $34,000. The companys 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.)

PART 1 Sales=

Cost of goods sold=

Gross margin=

Selling and administrative expenses=

Selling expenses=

Adminsistrative expense=

PART 2

Beginning finished goods inventory=

Add: Cost of goods manufactured=

Cost of goods available for sale=

Less:Ending finished goods=

Unadjusted costs of good sold=

Less: Overapplied overhead=

Adjusted cost of goods sold=

PART 3

Direct materials=

Beginning raw matierals inventory=

Add:Purchases of raw matierals=

Total raw materials avaiable=

Less:Ending raw matierlas inventory

Direct materials used in production=

Direct Labor=

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=