Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials) ts Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 218,000 $ 264,000 ? $ 153,000 $364,000 $ 351,000 00:13:23 h Inventory balances at the beginning and end of the year were as follows: Beginning Ending Raw materials $ 54,000 $ 37,000 Work in process $ 30,000 Finished goods $ 39,000 ? The total manufacturing costs added to production for the year were $690.000; the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $668,000, and the net operating income was $37.000. The company's underapplied or overapplied overhead is closed to cost of Goods Sold. 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 39,000 706,000 745,000 (90,000) Adjusted cost of goods sold $ 655,000 $ (44,000) 45 Schedule of Cost Goods Manufactured Beginning work in process inventory Direct materials: Beginning raw materials inventory $ 54,000 Add: Purchases of raw materials 264,000 Total raw materials available 318,000 Less: Ending raw materials inventory (37,000) 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 Less: Ending work in process inventory Cost of goods manufactured $ 281,000 45.000 364.000 690,000 646,000 (30,000) $ 706,000