Problem $3-13($Algo$)$ Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement $[$LO$3-3]$

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

Selling expenses $ $220,000$

Purchases of raw materials $ $268,000$

Direct labor $?$

Administrative expenses $ $159,000$

Manufacturing overhead applied to work in process $ $373,000$

Actual manufacturing overhead cost $ $354,000$

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

Beginning Ending

Raw materials $ $53,000$ $ $32,000$

Work in process $?$ $ $26,000$

Finished goods $ $34,000?$

The total manufacturing costs added to production for the year were $$685,000$; the cost of goods available for sale totaled $$740,000$; the unadjusted cost of goods sold totaled $$668,000$; and the net operating income was $$35,000.$ 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.$)$