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

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Accounting

Superior Company provided the following data for the year endedDecember 31 (all raw materials are used in production as directmaterials): Selling expenses $ 214,000 Purchases of raw materials $261,000 Direct labor ? Administrative expenses $ 155,000Manufacturing overhead applied to work in process $ 374,000 Actualmanufacturing overhead cost $ 358,000 Inventory balances at thebeginning and end of the year were as follows: Beginning of YearEnd of Year Raw materials $ 60,000 $ 31,000 Work in process ? $33,000 Finished goods $ 34,000 ? The total manufacturing costs forthe year were $685,000; the cost of goods available for saletotaled $730,000; the unadjusted cost of goods sold totaled$670,000; and the net operating income was $32,000. The company’sunderapplied or overapplied overhead is closed to Cost of GoodsSold. Required: Prepare schedules of cost of goods manufactured andcost of goods sold and an income statement. (Hint: Prepare theincome statement and schedule of cost of goods sold first followedby the schedule of cost of goods manufactured.)

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A B C D Superior Company Income Statement 4 Sales 1055000 5 Cost of goods sold 654000 6 Gross margin 401000 7 Selling and administrative expenses 8 Selling expenses 214000 9 Administrative expenses 155000 10 11 369000 12 Net operating income 32000 Superior Company Schedule of Cost of Goods Sold 16 Cost of goods manufactured 696000 17 Add Beginning finished goods inventory 34000 18 Cost of goods available for sale 730000 19 Less Ending finished goods inventory See Answer

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