PROBLEM 3-23 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [L03-6] Superior Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Total actual manufacturing overhead costs $140,000 $290,000 ? $100,000 $285,000 $270,000 Inventory balances at the beginning and end of the year were as follows: End of Year Raw materials Work in process. Finished goods Beginning of Year $40,000 2 $50,000 $10,000 $35,000 The total manufacturing costs for the year were $683,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $660,000, and the net operating income was $30,000. The company's overapplied or underapplied overhead is closed entirely 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 sched- ule of cost of goods manufactured.)