Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $ 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Management Accounting Pearson New International

Authors: Robert Steven Kaplan, Anthony A. Atkinson

3rd Edition

1292026596, 978-1292026596

More Books

Students also viewed these Accounting questions

Question

why you want to attend graduate school in general;

Answered: 1 week ago

Question

What factors in Nooyis Five C model facilitate employee trust?

Answered: 1 week ago