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

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Finance

Superior Company provided the following data for the year endedDecember 31 (all raw materials are used in production as directmaterials):
Selling expenses $ 211,000
Purchases of raw materials $ 265,000
Direct labor ?
Administrative expenses $ 152,000
Manufacturing overhead applied to work in process $ 365,000
Actual manufacturing overhead cost $ 354,000
Inventory balances at the beginning and end of the year were asfollows:
Beginning of Year End of Year
Raw materials $ 52,000 $ 39,000
Work in process ? $ 31,000
Finished goods $ 33,000 ?
The total manufacturing costs for the year were $685,000; thecost of goods available for sale totaled $725,000; the unadjustedcost of goods sold totaled $660,000; and the net operating incomewas $34,000. The company’s underapplied or overapplied overhead isclosed to Cost of Goods Sold.
Required:
Prepare schedules of cost of goods manufactured and cost ofgoods 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.)

Answer & Explanation Solved by verified expert

3.6 Ratings (668 Votes)

Manufacturing costs Raw materials used Direct labor Manufacturing overhead applied685000 278000 Direct labor 365000Direct labor 42000Cost of goods available for sale Beginning finished See Answer

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Superior Company provided the following data for the year endedDecember 31 (all raw materials are used in production as directmaterials):Selling expenses$211,000Purchases of raw materials$265,000Direct labor?Administrative expenses$152,000Manufacturing overhead applied to work in process$365,000Actual manufacturing overhead cost$354,000Inventory balances at the beginning and end of the year were asfollows:Beginning of YearEnd of YearRaw materials$52,000$39,000Work in process?$31,000Finished goods$33,000?The total manufacturing costs for the year were $685,000; thecost of goods available for sale totaled $725,000; the unadjustedcost of goods sold totaled $660,000; and the net operating incomewas $34,000. The company’s underapplied or overapplied overhead isclosed to Cost of Goods Sold.Required:Prepare schedules of cost of goods manufactured and cost ofgoods 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.)


Selling expenses	$	211,000
Purchases of raw materials	$	265,000
Direct labor		?
Administrative expenses	$	152,000
Manufacturing overhead applied to work in process	$	365,000
Actual manufacturing overhead cost	$	354,000

	Beginning of Year		End of Year
Raw materials	$	52,000	$	39,000
Work in process		?	$	31,000
Finished goods	$	33,000		?