Superior Manufacturing Company has the following cost
and expense data for the year ending December 31, 2012.
Raw materials, 1/1/12 $ 30,000
Raw materials, 12/31/12 20,000
Raw materials purchases 205,000
Work in process, 1/1/12 80,000
Work in process, 12/31/12 50,000
Direct labor 350,000
Indirect labor 90,000
Factory utilities 65,000
Factory machinery rent 40,000
Factory managers salary 35,000
Depreciation, factory building 24,000
Indirect materials 15,000
Insurance, factory $ 14,000
Property taxes, factory building 6,000
Finished goods, 1/1/12 110,000
Finished goods, 12/31/12 120,000
Sales (net) 1,500,000
Delivery expenses 100,000
Sales commissions 150,000
Administrative expenses 300,000
Instructions
(a) Prepare a cost of goods manufactured schedule for Superior Company for 2012.
(b) Prepare an income statement for Superior Company for 2012.
(c) Assume that Superior Companys ledgers show the balances of the following
current asset accounts: Cash $17,000, Accounts Receivable (net) $120,000,
Prepaid Expenses $13,000, and Short-term Investments $26,000.
Prepare the current assets section of the balance sheet
for Superior Company as of December 31, 2012.
Start with beginning work in process as the first item
in the cost of goods manufactured schedule.
Sum direct materials used, direct labor, and
total manufacturing overhead to determine total manufacturing costs.
Sum beginning work in process and total manufacturing costs
to determine total cost of work in process.
Cost of goods manufactured is
the total cost of work in process less ending work in process.
In the cost of goods sold section of the income statement,
show beginning and ending finished goods inventory
and cost of goods manufactured.
In the balance sheet, list manufacturing inventories
in the order of their expected realization in cash, with finished goods first.
Cost of Goods Manufactured schedule
Superior Manufacturing Company
Cost of Goods Manufactured Schedule
for the year ending December 31, 2012
Work in process, January 1
Direct Materials
Raw materials inventory, January 1
Raw materials purchases
Total raw materials available for use
Less: Raw materials inventory, December 31
Direct Materials used
Direct Labor
Manufacturing Overhead
Indirect labor 90,000
Factory utilities 65,000
Factory machinery rent 40,000
Factory managers salary 35,000
Depreciation, factory building 24,000
Indirect materials 15,000
Insurance, factory $ 14,000
Property taxes, factory building 6,000
Total Manufacturing Overhead
Total Manufacturing Costs
Total Cost of work in process
Less: Work in process, December 31
Cost of Goods Manufactured				$ -