Reference no: EM132580925

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           $266,000

Direct labor ?

Administrative expenses$154,000

Manufacturing overhead applied to work in process$370,000

Actual manufacturing overhead cost$352,000

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

                                  Beginning of Year                 End of Year

Raw materials             $54,000                           $37,000

Work in process               ?                                     $27,000

Finished goods                $34,000                                 ?

The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $750,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $36,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Required:

Question 1: 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.)