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 | $ | 217,000 |
Purchases of raw materials | $ | 264,000 |
Direct labor | ? | |
Administrative expenses | $ | 154,000 |
Manufacturing overhead applied to work in process | $ | 371,000 |
Actual manufacturing overhead cost | $ | 360,000 |
Inventory balances at the beginning and end of the year were as follows:
Beginning of Year | End of Year | |||||
Raw materials | $ | 55,000 | $ | 34,000 | ||
Work in process | ? | $ | 25,000 | |||
Finished goods | $ | 38,000 | ? | |||
The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $661,000; and the net operating income was $36,000. The companys underapplied or overapplied overhead is closed to Cost of Goods Sold.
1) Prepare an Income Statement
2) Prepare a Schedule of Cost of Goods Sold
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