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 | $ | 218,000 |
Purchases of raw materials | $ | 269,000 |
Direct labor | ? | |
Administrative expenses | $ | 158,000 |
Manufacturing overhead applied to work in process | $ | 377,000 |
Actual manufacturing overhead cost | $ | 358,000 |
Inventory balances at the beginning and end of the year were as follows:
Beginning | Ending | |||||
Raw materials | $ | 51,000 | $ | 39,000 | ||
Work in process | ? | $ | 32,000 | |||
Finished goods | $ | 37,000 | ? | |||
The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $663,000; and the net operating income was $32,000. The companys underapplied or overapplied overhead is closed to Cost of Goods Sold.
Required:
1) Prepare schedules of cost of goods manufactured
2) Prepare schedules of cost of goods sold
3) Prepare 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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