Question
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):
Selling expenses | $ 215,000 |
---|---|
Purchases of raw materials | $ 269,000 |
Direct labor | ? |
Administrative expenses | $ 157,000 |
Manufacturing overhead applied to work in process | $ 374,000 |
Actual manufacturing overhead cost | $ 357,000 |
Inventory balances at the beginning and end of the year were as follows:
Beginning | Ending | |
---|---|---|
Raw materials | $ 52,000 | $ 38,000 |
Work in process | ? | $ 31,000 |
Finished goods | $ 39,000 | ? |
The total manufacturing costs added to production for the year were $670,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $668,000; and the net operating income was $38,000. 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.)
Superior Company Income Statement Superior Company \begin{tabular}{|l|l|} \hline Schedule of Cost of Goods Sold \\ \hline \hline & \\ \hline \hline & \\ \hline Adjusted cost of goods sold & \\ \hline \hline \end{tabular} Superior Company Schedule of Cost Goods Manufactured Direct materials
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