Reference no: EM132502656

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):

Selling expenses$215,000

Purchases of raw materials$264,000

Direct labor ?

Administrative expenses$155,000

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 as follows:

Beginning of Year raw materials $58,000, work in process ______ the finished goods $36000

End of year Raw materials $58000 work in process $29,000 finished goods ____

• The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $38,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Required:

Question 1: 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.)