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

The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $667,000; and the net operating income was $33,000. 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.)

Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 212,000 $ 268,000 160,000 $ 364,000 $ 353,000 Inventory balances at the beginning and end of the year were as follows: Beginning of Year End of Year Raw materials Work in process Finished goods $ 58,000 30,000 2 24,000 $ 37,000