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

Beginning and ending inventory balances were as follows:

The total manufacturing costs added to production for the year were $$675,000$; the cost of goods available for sale totaled $$725,000$;

the unadjusted cost of goods sold totaled $$669,000$; and the net operating income was $$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.$)$

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