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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
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 | $ 212,000 |
---|---|
Purchases of raw materials | $ 268,000 |
Direct labor | ? |
Administrative expenses | $ 156,000 |
Manufacturing overhead applied to work in process | $ 362,000 |
Actual manufacturing overhead cost | $ 351,000 |
Inventory balances at the beginning and end of the year were as follows:
Beginning | Ending | |
---|---|---|
Raw materials | $ 57,000 | $ 37,000 |
Work in process | ? | $ 26,000 |
Finished goods | $ 38,000 | ? |
The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $32,000. The companys underapplied or overapplied overhead is closed to Cost of Goods Sold.
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