Question 1:-Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):

Selling expenses$214,000Purchases of raw materials$269,000Direct labor?Administrative expenses$152,000Manufacturing overhead applied to work in process$368,000Actual manufacturing overhead cost$351,000

Inventory balances at the beginning and end of the year were as follows:

Beginning of YearEnd of YearRaw materials$55,000$31,000Work in process?$25,000Finished goods$30,000?

The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $720,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $38,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Required:

Make 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.)

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• Income Statement
• COGS Schedule
• COGM Schedule

Question 2:-Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $399,000 of manufacturing overhead for an estimated allocation base of 1,050 direct labor-hours. The following transactions took place during the year:

1. Raw materials purchased on account, $280,000.
2. Raw materials used in production (all direct materials), $265,000.
3. Utility bills incurred on account, $75,000(80% related to factory operations, and the remainder related to selling and administrative activities).
4. Accrued salary and wage costs:

Direct labor (1,100 hours)$310,000Indirect labor$106,000Selling and administrative salaries$190,000

1. Maintenance costs incurred on account in the factory, $70,000
2. Advertising costs incurred on account, $152,000.
3. Depreciation was recorded for the year, $88,000(85% related to factory equipment, and the remainder related to selling and administrative equipment).
4. Rental cost incurred on account, $113,000(90% related to factory facilities, and the remainder related to selling and administrative facilities).
5. Manufacturing overhead cost was applied to jobs, $?.
6. Cost of goods manufactured for the year, $930,000.
7. Sales for the year (all on account) totaled $2,000,000. These goods cost $960,000according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were:

Raw Materials$46,000Work in Process$37,000Finished Goods$76,000

Required:

1. Prepare journal entries to record the preceding transactions.

2. Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.)

3. Make a schedule of cost of goods manufactured.

4A.make a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.

4B.Make a schedule of cost of goods sold.

5. make an income statement for the year.