Superior Company provided the following data for the year ended
December 31 (all raw materials are used in production as direct
materials):
|
|
|
| Selling expenses |
$ |
216,000 |
| Purchases of raw materials |
$ |
261,000 |
| Direct labor |
|
? |
| Administrative expenses |
$ |
154,000 |
| Manufacturing overhead applied to work in process |
$ |
370,000 |
| Actual manufacturing overhead cost |
$ |
351,000 |
Inventory balances at the beginning and end of the year were as
follows:
|
Beginning of Year |
End of Year |
| Raw materials |
$ |
53,000 |
|
$ |
32,000 |
|
| Work in process |
|
? |
|
$ |
23,000 |
|
| Finished goods |
$ |
39,000 |
|
|
? |
|
|
The total manufacturing costs for the year were $680,000; the
cost of goods available for sale totaled $720,000; the unadjusted
cost of goods sold totaled $664,000; and the net operating income
was $32,000. 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 followed
by the schedule of cost of goods manufactured.)
