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

Selling expenses	$217,000
Purchases of raw materials	$264,000
Direct labor	?
Administrative expenses	$160,000
Manufacturing overhead applied to work in progress	$376,000
Actual manufacturing overhead costs	$357,000

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

	Beginning	Ending
Raw materials	$59,000	$37,000
Work in process	$?	$32,000
Finished goods	$40,000	?

The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $670,000; 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.)