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

Selling expenses $218,000

Purchases of raw materials $261,000

Direct labor ?

Administrative expenses $152,000

Manufacturing overhead applied to work in process $375,000

Actual manufacturing overhead cost $356,000

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

Beg. of year End of year

Raw Materials $50,000 $30,000

Work In Process ? $24,000

Finished Goods $36,000 ?

The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $664,000; and the net operating income was $39,000. 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.)