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

Selling expenses $ 215,000

Purchases of raw materials $ 265,000

Direct labor ?

Administrative expenses $ 158,000

Manufacturing overhead applied to work in process $ 370,000

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 $ 52,000 $ 37,000

Work in process ? $ 25,000

Finished goods $ 31,000 ?

The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $666,000; and the net operating income was $31,000. 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.)