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Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): $ 214,000 $
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): $ 214,000 $ 263,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 152,000 $365,000 $ 350,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year End of Year $ 60,000 $ 31,000 ? $ 26,000 $ 30,000 The total manufacturing costs for the year were $690,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $666,000; and the net operating income was $40,000. 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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