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

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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 $ 212,000 Purchases of raw materials $261,000 Direct labor ? Administrative expenses $ 157,000Manufacturing overhead applied to work in process $ 371,000 Actualmanufacturing overhead cost $ 357,000 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 ? $27,000 Finished goods $ 35,000 ? The total manufacturing costs forthe year were $680,000; the cost of goods available for saletotaled $750,000; the unadjusted cost of goods sold totaled$664,000; and the net operating income was $38,000. 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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Superior Company Schedule of Cost of Goods Manufactured Direct materials Raw materials inventory beginning 60000 Purchase of raw materials 261000 Total taw materials available 321000 Raw materials 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 $ 212,000 Purchases of raw materials $261,000 Direct labor ? Administrative expenses $ 157,000Manufacturing overhead applied to work in process $ 371,000 Actualmanufacturing overhead cost $ 357,000 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 ? $27,000 Finished goods $ 35,000 ? The total manufacturing costs forthe year were $680,000; the cost of goods available for saletotaled $750,000; the unadjusted cost of goods sold totaled$664,000; and the net operating income was $38,000. 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.)