Question

Problem 3-13 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement (LO3-3] Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): $ 212,000 $ 265,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 155,000 $ 370,000 $ 351,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year $ 60,000 ? $ 34,000 End of Year $ 31,000 $ 29,000 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 $666,000; and the net operating income was $39,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Required: 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.) Complete this question by entering your answers in the tabs below. COGS Income Statement | COGM Schedule Schedule

Answer 1

Income statement

Sales		1053000
Cost of goods sold (666000-19000)		647000
Gross profit		406000
Selling and administrative expense
Selling expense	212000
Administrative expense	155000
Total Selling and administrative expense		367000
Net operating income		39000

Schedule of cost of goods sold

Beginning finished goods	34000
Cost of goods manufactured	711000
Cost of goods available for sale	745000
Ending finished goods	-79000
Unadjusted cost of goods sold	666000
Less: Over applied overhead	-19000
Adjusted cost of goods sold	647000

Schedule of cost of goods manufactured

Direct material used
Beginning material	60000
Raw material purchase	265000
Raw material available for use	325000
Ending material	-31000
Direct material used		294000
Direct labor		16000
Overhead applied		370000
Total manufacturing cost		680000
Beginning work in process		60000
Total cost of work in process		740000
Ending work in process		-29000
Cost of goods manufactured		711000