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 $
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):
Selling expenses | $ | 220,000 |
Purchases of raw materials | $ | 267,000 |
Direct labor | ? | |
Administrative expenses | $ | 153,000 |
Manufacturing overhead applied to work in process | $ | 376,000 |
Actual manufacturing overhead cost | $ | 360,000 |
Inventory balances at the beginning and end of the year were as follows:
Beginning of Year | End of Year | |||||
Raw materials | $ | 52,000 | $ | 33,000 | ||
Work in process | ? | $ | 31,000 | |||
Finished goods | $ | 35,000 | ? | |||
The total manufacturing costs for the year were $670,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $663,000; and the net operating income was $38,000. 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.)
- Income Statement
- COGS Schedule
- COGM Schedule
Prepare an income statement for the year.
Prepare a schedule of cost of goods sold.
Prepare a schedule of cost of goods manufactured.
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