Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost Inventory balances at the beginning and end of the year were as follows: $ 211,000 $ 261,000 ? $ 153,000 $ 372,000 $ 359,000 Raw materials Work in process Finished goods Beginning Ending $ 52,000 $ 37,000 ? $ 32,000 $ 36,000 ? The total manufacturing costs added to production for the year were $685,000; 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 $35,000. The company's 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.) Income Statement COGS Schedule COGM Schedule Prepare an income statement for the year. Sales Superior Company Income Statement Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses $ 211,000 Administrative expenses 153,000 Net operating income 654,000 (654,000) 364,000 $ 32,000 Income Statement COGS Schedule COGM Schedule Prepare a schedule of cost of goods sold. Superior Company Schedule of Cost of Goods Sold Beginning finished goods inventory $ 36,000 Add: Cost of goods manufactured 704,000 Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Less: Overapplied overhead Adjusted cost of goods sold 740,000 73,000 667,000 13,000 $ 654,000 < Income Statement COGM Schedule > Income Statement COGS Schedule COGM Schedule Prepare a schedule of cost of goods manufactured. Superior Company Beginning work in process inventory Direct materials: Beginning raw materials inventory Schedule of Cost Goods Manufactured Total raw materials available Less: Ending raw materials inventory Direct materials used in production Direct labor Manufacturing overhead applied to work in process Total manufacturing costs added to production Total manufacturing costs to account for 261,000 0