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

Selling expenses$ 217,000Purchases of raw materials$ 266,000Direct labor?Administrative expenses$ 153,000Manufacturing overhead applied to work in process$ 370,000Actual manufacturing overhead cost$ 359,000

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

BeginningEndingRaw materials$ 58,000$ 31,000Work in process?$ 28,000Finished goods$ 30,000?

The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $34,000. 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.)