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 $ 263,000 Direct labor ? Administrative expenses $ 158,000 Manufacturing overhead applied to work in process $ 371,000 Actual manufacturing overhead cost $ 356,000 Inventory balances at the beginning and end of the year were as follows: Beginning Ending Raw materials $ 52,000 $ 33,000 Work in process ? $ 25,000 Finished goods $ 36,000 ? 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 $660,000; and the net operating income was $34,000. 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.)