Problem 3-13 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income...

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Accounting

Problem 3-13 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO3-3]

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):

Selling expenses	$ 212,000
Purchases of raw materials	$ 268,000
Direct labor	?
Administrative expenses	$ 156,000
Manufacturing overhead applied to work in process	$ 362,000
Actual manufacturing overhead cost	$ 351,000

Inventory balances at the beginning and end of the year were as follows:

	Beginning	Ending
Raw materials	$ 57,000	$ 37,000
Work in process	?	$ 26,000
Finished goods	$ 38,000	?

The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $32,000. The companys underapplied or overapplied overhead is closed to Cost of Goods Sold.

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