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

Selling expenses $ 212,000

Purchases of raw materials $ 267,000

Direct labor ?

Administrative expenses $ 155,000

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 $ 60,000 $ 38,000

Work in process ? $ 30,000

Finished goods $ 38,000 ?

The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $668,000; 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.)