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	$	211,000
Purchases of raw materials	$	262,000
Direct labor		?
Administrative expenses	$	153,000
Manufacturing overhead applied to work in process	$	374,000
Actual manufacturing overhead cost	$	360,000

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

	Beginning			Ending
Raw materials	$	56,000		$	31,000
Work in process		?		$	30,000
Finished goods	$	31,000			?

The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $663,000; and the net operating income was $36,000. 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.)

1) Prepare an Income Statement for the year.

2) Prepare a schedule of cost of goods sold.

3) Prepare a schedule of cost of goods manufactured.