Superior Company provided the following data for the year ended December all raw materials are used in production as direct materials:
Selling expenses $
Purchases of raw materials $
Direct labor
Administrative expenses $
Manufacturing overhead applied to work in process $
Actual manufacturing overhead cost $
Inventory balances at the beginning and end of the year were as follows:
Beginning Ending
Raw materials $ $
Work in process $
Finished goods $
The total manufacturing costs added to production for the year were $; the cost of goods available for sale totaled $; the unadjusted cost of goods sold totaled $; and the net operating income was $ The companys 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.
