Superior Manufacturing Company has the following cost and expenses data for the year ending December 31, 2018

Raw materials, January 1 $ $30,000

Raw materials, December 31 20,000

Raw materials purchased 205,000

Indirect materials 15,000

Work in process, January 1 80,000

Work in process, December 31 50,000

Finished goods, January 1 110,000

Finished goods, December 31 120,000

Direct labour 350,000

Factory manager's salary 35,000

Insurance - factory 14,000

Property taxes - factory building 6,000

Sales (net) 1,500,000

Delivery expenses 100,000

Sales commissions 150,000

Indirect labour 90,000

Factory machinery rent 40,000

Factory utilities 65,000

Amortization - factory building 24,000

Administrative expenses 300,000

Instructions

a) Prepare a cost of goods manufactured schedule for Superior Manufacturing Company for 2018.

b) Prepare an income statement for Superior Manufacturing Company for 2018.

c) Assume that Superior Manufacturing Company s ledgers show the following balances in its 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 Manufacturing Company as at December 31,2018

d) Why do you think that the manufacturing overhead account balances should be closed on December 31, 2018?