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$215,000Purchases 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$215,000Purchases of raw materials$266,000Direct labor?Administrative expenses$154,000Manufacturing overhead applied to work in process$370,000Actual manufacturing overhead cost$352,000
Inventory balances at the beginning and end of the year were as follows:
Beginning of YearEnd of YearRaw materials$54,000$37,000Work in process?$27,000Finished goods$34,000?
The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $750,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $36,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold.
Required:
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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