Question
Problem 3-23 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO3-6] Superior Company provided the following account balances for the
Problem 3-23 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO3-6]
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 | $ | 218,000 |
Purchases of raw materials | $ | 261,000 |
Direct labor | ? | |
Administrative expenses | $ | 152,000 |
Manufacturing overhead applied to work in process | $ | 335,000 |
Total actual manufacturing overhead costs | $ | 353,000 |
Inventory balances at the beginning and end of the year were as follows: |
Beginning of Year | End of Year | |||||
Raw materials | $ | 60,000 | $ | 37,000 | ||
Work in process | ? | $ | 31,000 | |||
Finished goods | $ | 30,000 | ? | |||
The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $666,000; and the net operating income was $32,000. The companys overapplied or underapplied overhead is closed entirely to Cost of Goods Sold. |
(Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.) |
Required: |
a. | Prepare a schedule of cost of goods manufactured.
|
b. | Prepare a schedule of cost of goods sold.
|
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