Item2

Item 2

Required:

Superior Corporation applies manufacturing overhead to production at 70% of direct labor cost. During the year ended 20xx, manufacturing overhead of $138,950 was applied to production; actual manufacturing overhead was $157,800. Ending Work in Process Inventory was $21,505, and ending Finished Goods Inventory was $33,600. Work in Process Inventory increased by 15% during the year and Finished Goods Inventory increased by 20% during the year. Unadjusted Cost of Goods Sold was $574,500.

Complete the following schedule: (Hint: Begin with unadjusted cost of goods sold and work forward and then backward.)

\begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Item } & Amount \\ \hline Direct Materials Used in Production \\ \hline Direct Labor & \\ \hline Manufacturing Overhead Applied & \\ \hline Total current manufacturing costs & \\ \hline+ Beginning work in process inventory \\ \hline - Ending work in process inventory & \\ \hline Cost of Goods Manufactured \\ \hline + Beginning work in process inventory \\ \hline - Ending work in process inventory \\ \hline Unadjusted cost of goods sold \\ \hline Under(over)applied overhead adjustment \\ \hline Adjusted cost of goods sold \\ \hline \end{tabular}