Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials $215,000 $268,000 Direct labor ? Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 153,000 $364,000 354,000 Inventory balances at the beginning and end of the year were as follows: Beginning of Year End of Year 59,000 $32,000 $32,000 Raw materials Work in process Finished goods ? 37,000 ? The total manufacturing costs for the year were $670,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $37,000. The company's 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 Income COGS COGM Schedule Statement Schedule Prepare an income statement for the year. Superior Company Income Statement Sales Cost of goods sold Gross margin 0 Selling and administrative expenses: Selling expenses Administrative expenses Net operating income COGS Schedule> Income Statement Superior Company Schedule of Cost of Goods Sold Adjusted cost of goods sold KIncome Statement COGM Schedule> Superior Company Schedule of Cost Goods Manufactured Direct materials: Beginning raw materials inventory $ 59,000 Add: Purchases of raw materials 268,000 Total raw materials available 327,000 295,000 Less: Ending raw materials inventory Raw materials used in production Total manufacturing costs 0 Cost of goods manufactured