Question
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses$214,000Purchases of
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):
Selling expenses$214,000Purchases of raw materials$265,000Direct labor?Administrative expenses$152,000Manufacturing overhead applied to work in process$363,000Actual manufacturing overhead cost$353,000
Inventory balances at the beginning and end of the year were as follows:
Beginning of YearEnd of YearRaw materials$57,000$33,000Work in process?$29,000Finished goods$32,000?
The total manufacturing costs for the year were $690,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $37,000. 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.)
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