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	$	210,000
Purchases of raw materials	$	261,000
Direct labor		?
Administrative expenses	$	155,000
Manufacturing overhead applied to work in process	$	338,000
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	$	55,000		$	31,000
Work in process		?		$	25,000
Finished goods	$	38,000			?

The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $667,000; and the net operating income was $38,000. 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.

Direct materials
Raw materials available
raw materials used in production
Total manufacturing cost
Cost of goods manufactured

b.

Prepare a schedule of cost of goods sold.

Ajusted cost of goods sold

c.

Prepare an income statement for the year.

Selling and administrative expensess