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 $ 215,000 Purchases of raw materials $ 261,000 Direct labor ? Administrative expenses $ 151,000 Manufacturing overhead applied to work in process $ 368,000 Actual manufacturing overhead cost $ 352,000 Inventory balances at the beginning and end of the year were as follows: Beginning Ending Raw materials $ 51,000 $ 35,000 Work in process. $ 28,000 Finished goods $ 33,000 ? The total manufacturing costs added to production for the year were $685,000; the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $36,000. The companys underapplied or overapplied overhead is closed to Cost of Goods Sold.