Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 211,000 $ 264,000 2 $ 159.000 $361,000 $ 350,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in proces Tinished goods Beginning Ending $ 55,000 $30,000 ? $ 33,000 $11,000 2 The total manufacturing costs added to production 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 $38,000. The company's ohderapplied or overopplied 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) Superior Company Income Statement Sales 0 Cost of goods sold Gross margin Selling and administrative expenses: Administrative expenses Selling expenses 0 Net operating income Superior Company Schedule of Cost of Goods Sold Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Add: Underapplied overhead Adjusted cost of goods sold +