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Superior Company provided the following data for the year ended December 31 (all raw materials...

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Accounting

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 $ 158,000
Manufacturing overhead applied to work in process $ 366,000
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 $ 58,000 $ 32,000
Work in process ? $ 31,000
Finished goods $ 34,000 ?

The total manufacturing costs for the year were $690,000; the cost of goods available for sale totaled $750,000; the unadjusted cost of goods sold totaled $661,000; and the net operating income was $32,000. 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.)

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