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.)