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

Selling expenses $ 210,000

Purchases of raw materials $ 265,000

Direct labor ? Administrative expenses $ 155,000

Manufacturing overhead applied to work in process $ 371,000

Actual manufacturing overhead cost $ 356,000

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

	Beginning of Year	End of Year
Raw Materials	54,000	36,000
Work in Process		31,000
Finished Goods	39,000

The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $720,000; the unadjusted cost of goods sold totaled $666,000; and the net operating income was $36,000. 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.)