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

Selling expenses	$ 140,000
Purchases of raw materials	$ 290,000
Direct labor	?question mark
Administrative expenses	$ 100,000
Manufacturing overhead applied to work in process	$ 285,000
Actual manufacturing overhead cost	$ 270,000

Beginning and ending inventory balances were as follows:

	Beginning	Ending
Raw materials	$ 40,000	$ 10,000
Work in process	?question mark	$ 35,000
Finished goods	$ 50,000	?question mark

The total manufacturing costs added to production for the year were $683,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $660,000; and the net operating income was $30,000. 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.)

Prepare a schedule of cost of goods sold. Prepare an income statement for the year. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{2}{|c|}{ Superior Company } & & \\ \hline Beginning work in process inventory & & & \\ \hline Direct materials: & & & \\ \hline Beginning raw materials inventory & & & \\ \hline Add: Purchases of raw materials & & & \\ \hline Total raw materials available & & & \\ \hline Less: Ending raw materials inventory & & & \\ \hline Direct materials used in production & & & \\ \hline Direct labor & & & \\ \hline Manufacturing overhead applied to work in process & & & \\ \hline Total manufacturing costs added to production & & & \\ \hline Total manufacturing costs to account for & & & \\ \hline Less: Ending work in process inventory & & \\ \hline Cost of goods manufactured & & & \\ \hline \end{tabular}