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$219,000

Purchases of raw materials$262,000

Direct labor ?

Administrative expenses$152,000

Manufacturing overhead applied to work in process$338,000

Total actual manufacturing overhead costs$359,000

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

Beginning and ending

Raw materials	$	51,000		$	37,000
Work in process		?		$	33,000
Finished goods	$	37,000			?

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 $668,000; and the net operating income was $39,000. 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.

Direct materials:

Raw materials available:

Raw material used in production:

Total manufacturing costs

b. Prepare a schedule of cost of goods sold.

c. Prepare an income statement for the year.