Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):

Selling expenses $ 215,000

Purchases of raw materials $ 266,000

Direct labor ?

Administrative expenses $ 151,000

Manufacturing overhead applied to work in process $ 366,000

Actual manufacturing overhead cost $ 352,000

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

Beginning of Year End of Year

Raw materials $ 56,000 $ 35,000

Work in process ? $30,000

Finished goods $37,000 ?

The total manufacturing costs for the year were $670,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $666,000; and the net operating income was $33,000. The companys underapplied or overapplied overhead is closed to Cost of Goods Sold.

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

Selling expenses	$	215,000
Purchases of raw materials	$	266,000
Direct labor		?
Administrative expenses	$	151,000
Manufacturing overhead applied to work in process	$	366,000
Actual manufacturing overhead cost	$	352,000

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

	Beginning of Year			End of Year
Raw materials	$	56,000		$	35,000
Work in process		?		$	30,000
Finished goods	$	37,000			?