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...............................................................................................$140,000

Purchases of raw materials................................................................................$290,000

Direct labor.........................................................................................................?

Administrative expenses.....................................................................................$100,000

Manufacturing overhead applied to work in process...........................................$285,000

Total actual manufacturing overhead costs.........................................................$270,000

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

Beginning Year End year

Raw Materials........................................................................................... $40,000 $10,000

Finished goods........................................................................................ $50,000 ?

Work in Process................ ? $35,000

The total manufacturing costs for the year were $683,000: the cost of goods available for sale totaled $740,000: the unadjusted cost of goods sold totaled $660,000: and the net operating income was $30,000. The company's overapplied or underapplied overhead is closed entirely to Cost of Goods Sold.

Requried:

Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule fo cost of goods sold first followed by the schedule of cost of goods manufactured.)