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	$	214,000
Purchases of raw materials	$	263,000
Direct labor		?
Administrative expenses	$	151,000
Manufacturing overhead applied to work in process	$	337,000
Total actual manufacturing overhead costs	$	358,000

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

	Beginning of Year			End of Year
Raw materials	$	50,000		$	36,000
Work in process		?		$	26,000
Finished goods	$	38,000			?

The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $32,000. 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.)

a. Prepare a schedule of cost of goods manufactured.

SUPERIOR COMPANY
Schedule of Cost Goods Manufactured
Direct materials:
Raw materials available
Raw materials used in production
Total manufacturing costs		0
Cost of goods manufactured