Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 213,000 Purchases of raw materials $ 266,000 Direct labor ? Administrative expenses $ 157,000 Manufacturing overhead applied to work in process $ 378,000 Actual manufacturing overhead cost $ 359,000 Inventory balances at the beginning and end of the year were as follows: Beginning of Year End of Year Raw materials $ 56,000 $ 34,000 Work in process ? $ 32,000 Finished goods $ 39,000 ? 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 $661,000; 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	$	213,000
Purchases of raw materials	$	266,000
Direct labor		?
Administrative expenses	$	157,000
Manufacturing overhead applied to work in process	$	378,000
Actual manufacturing overhead cost	$	359,000

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

	Beginning of Year			End of Year
Raw materials	$	56,000		$	34,000
Work in process		?		$	32,000
Finished goods	$	39,000			?