Superior Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials): 220,000 Selling expenses 267,000 Purchases of raw materials Direct labor 152,000 Administrative expenses 334,000 Manufacturing overhead applied to work in process 351,000 Total actual manufacturing overhead costs Inventory balances at the beginning and end of the year were as follows: Beginning of End of Year Year 57,000 39,000 Raw materials 28,000 Work in process Finished goods 36,000 The total manufacturing costs for the year were $685,000, the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $661,000; and the net operating income was $35,000 The company's 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.)