Reference no: EM132611468

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

Selling expenses $219,000

Purchases of raw materials $260,000

Direct labor ?

Administrative expenses $155,000

Manufacturing overhead applied to work in process $378,000

Actual manufacturing overhead cost $359,000

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

                                        Beginning of Year                  End of Year

Raw materials                    $53,000                           $36,000

Work in process                         ?                               $23,000

Finished goods                      $40,000                               ?

The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $720,000; the unadjusted cost of goods sold totaled $667,000; and the net operating income was $34,000. The company's under applied or over applied overhead is closed to Cost of Goods Sold.

Required:

Question 1: Prepare schedules of cost of goods manufactured

Question 2: Prepare 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.)