Reference no: EM131873404

Question: The following information was taken from the accounting records of the Superior Company:

Depreciation of equipment.....................................................$70,000

Direct labor.........................................................................120,000

Factory taxes.........................................................................2,000

Goods in process inventory, Dec. 31, 2013................................250,000

Indirect labor.........................................................................10,000

Power...................................................................................16,000

Raw materials inventory, Dec. 31, 2013.......................................60,000

Raw materials purchases, for year.............................................230,000

Goods in process inventory, January 1, 2013...............................302,000

Raw materials inventory, January 1, 2013....................................110,000

Please prepare the Manufacturing statement for Superior Manufacturing Company. Information about the company, Job Order Cost.

In addition, please do the following:

1. Explain the conceptual difference between total manufacturing costs and cost of goods manufactured. What does it mean?

2. The factory overhead account must be adjusted at the end of an accounting period. Explain why this adjustment is needed and the consequences to the financial statements if the adjustment is not made.