Develop a schedule of cost of goods manufactured

Assignment Help Accounting Basics

Reference no: EM131983650

Problem

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

Selling expenses $ 218,000
Purchases of raw materials $ 268,000
Direct labor ?
Administrative expenses $ 155,000
Manufacturing overhead applied to work in process $ 334,000
Total actual manufacturing overhead costs $ 356,000

Inventory balances at the beginning and end of the year were as follows:

	Beginning of Year		End of Year
Raw materials	$	55,000	$	34,000
Work in process		?	$	23,000
Finished goods	$	39,000		?

The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $668,000; and the net operating income was $35,000. The company's overapplied or underapplied overhead is closed entirely to Cost of Goods Sold.

(Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)

Required:

a. Prepare a schedule of cost of goods manufactured.
b. Prepare a schedule of cost of goods sold.
c. Prepare an income statement for the year.

Reference no: EM131983650

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