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 $ 213,000 Purchases of raw materials $ 263,000 Direct labor question mark Administrative expenses $ 155,000 Manufacturing overhead applied to work in process $ 371,000 Actual manufacturing overhead cost $ 357,000 Beginning and ending inventory balances were as follows Beginning Ending Raw materials $ 56,000 $ 40,000 Work in process question mark $ 27,000 Finished goods $ 39,000 question mark The total manufacturing costs added to production for the year were $680,000 the cost of goods available for sale totaled $735,000 the unadjusted cost of goods sold totaled $664,000 and the net operating income was $39,000 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 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 02, 2024

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	$ 213,000
Purchases of raw materials	$ 263,000
Direct labor	?question mark
Administrative expenses	$ 155,000
Manufacturing overhead applied to work in process	$ 371,000
Actual manufacturing overhead cost	$ 357,000

Beginning and ending inventory balances were as follows:

	Beginning	Ending
Raw materials	$ 56,000	$ 40,000
Work in process	?question mark	$ 27,000
Finished goods	$ 39,000	?question mark

The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $664,000; and the net operating income was $39,000. 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.)