Superior Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials): $ 212,000 $ 267,000 Selling expenses Purchases of raw materials Direct labore Administrative expenses Manufacturing overhead applied to work in process Total actual manufacturing overhead costs $ 160,000 $338,000 Inventory balances at the beginning and end of the year were as follows: Beginning of End of Year Raw materials $ 55,000 $ 37,000 Work in process Finished goods $ 32,000 $ 26,000 The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $720,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $36,000. The company's overapplied or underapplied overhead is closed entirely to Cost of Goods Sold. Required: a. Prepare a schedule of cost of goods manufactured. SUPERIOR COMPANY Schedule of Cost Goods Manufactured Direct materials: Raw materials inventory, beginning Add: Purchase of raw materials Raw materials available Less: Raw materials inventory, ending Raw materials used in production Direct labor Manufacturing overhead applied to work in process inventory Total manufacturing costs Add: Work in process inventory, beginning $ Less: Work in process inventory, ending Cost of goods manufactured b. Prepare a schedule of cost of goods sold. SUPERIOR COMPANY Schedule of Cost of Goods Sold Finished goods inventory, beginning Add: Cost of goods manufactured Cost of goods available for sale Less: Finished goods inventory, ending Unadjusted cost of goods sold Less: Overapplied overhead Adjusted cost of goods sold c. Prepare an income statement for the year. SUPEROIR COMPANY Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Administrative expenses e expenses Selling expenses nses Net operating income