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

Selling expenses	$	212,000
Purchases of raw materials	$	267,000
Direct labor		?
Administrative expenses	$	153,000
Manufacturing overhead applied to work in process	$	380,000
Actual manufacturing overhead cost	$	360,000

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

	Beginning			Ending
Raw materials	$	54,000		$	39,000
Work in process		?		$	28,000
Finished goods	$	32,000			?

The total manufacturing costs added to production for the year were $685,000; the cost of goods available for sale totaled $720,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $37,000. 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.)

Complete this question by entering your answers in the tabs below.

• Income Statement
• COGS Schedule
• COGM Schedule

Prepare an income statement for the year.

NEED TO ANSWER:

Superior Company
Income Statement
Sales
Cost of goods sold
Gross margin		0
Selling and administrative expenses:
Selling expenses	$212,000
Administrative expenses	153,000
		365,000

Complete this question by entering your answers in the tabs below.

• Income Statement
• COGS Schedule
• COGM Schedule

Prepare a schedule of cost of goods sold.

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
Less: Overapplied overhead
Adjusted cost of goods sold

Complete this question by entering your answers in the tabs below.

• Income Statement
• COGS Schedule
• COGM Schedule

Prepare a schedule of cost of goods manufactured.

Superior Company
Schedule of Cost Goods Manufactured
Direct materials:
Beginning raw materials inventory	$54,000
Add: Purchases of raw materials	267,000
Total raw materials available
Less: Ending raw materials inventory
Direct materials used in production
Direct labor
Manufacturing overhead applied to work in process
Total manufacturing costs added to production
Total manufacturing costs to account for			0
Less: Ending work in process inventory
Cost of goods manufactured