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

Selling expenses	$	211,000
Purchases of raw materials	$	260,000
Direct labor		?
Administrative expenses	$	158,000
Manufacturing overhead applied to work in process	$	366,000
Actual manufacturing overhead cost	$	355,000

Inventory balances at the beginning and end of the year were as follows:

	Beginning of Year			End of Year
Raw materials	$	51,000		$	35,000
Work in process		?		$	30,000
Finished goods	$	34,000			?

The total manufacturing costs for the year were $675,000; 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 $34,000. 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.

Superior Company
Income Statement
Selling and administrative expenses:

• COGS Schedule
• COGM Schedule

Prepare a schedule of cost of goods sold.

Superior Company
Schedule of Cost of Goods Sold
Adjusted cost of goods sold

Prepare a schedule of cost of goods manufactured.

Superior Company
Schedule of Cost Goods Manufactured
Direct materials:
Total raw materials available
Raw materials used in production
Total manufacturing costs
Cost of goods manufactured