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	$	215,000
Purchases of raw materials	$	262,000
Direct labor		?
Administrative expenses	$	158,000
Manufacturing overhead applied to work in process	$	331,000
Total actual manufacturing overhead costs	$	357,000

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

	Beginning of Year	End of Year
Raw materials	$	58,000		$	39,000
Work in process		?		$	26,000
Finished goods	$	32,000			?

The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $666,000; and the net operating income was $30,000. 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.