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 | $ | 214,000 |
Purchases of raw materials | $ | 267,000 |
Direct labor | ? | |
Administrative expenses | $ | 160,000 |
Manufacturing overhead applied to work in process | $ | 368,000 |
Actual manufacturing overhead cost | $ | 356,000 |
Inventory balances at the beginning and end of the year were as follows:
Beginning of Year | End of Year | |||||
Raw materials | $ | 59,000 | $ | 38,000 | ||
Work in process | ? | $ | 26,000 | |||
Finished goods | $ | 37,000 | ? | |||
The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $663,000; and the net operating income was $37,000. 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.)
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