Question

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): $ 213,000 $ 264,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 160,000 $ 371,000 $352,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of End of Year Year $ 60,000 $ 35,000 ? $ 31,000 $ 39,000 The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $667,000; and the net operating income was $32,000. 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. Income Statement COGS Schedule COGM Schedule Prepare an income statement for the year. Superior Company Income Statement Selling and administrative expenses < Income Statement COGS Schedule
Show work please

Answer 1

1) Income statement

Sales		1053000
Cost of goods sold (667000-19000)		648000
Gross profit		405000
Selling and administrative expense
Selling expense	213000
Administrative expense	160000
Total Selling and administrative expense		373000
Net operating income		32000

2) Schedule cost of goods sold

Beginning finished goods	39000
Cost of goods manufactured	686000
Cost of goods available for sale	725000
Less: Ending finished goods	-58000
Unadjusted cost of goods sold	667000
Less: Over applied overhead	-19000
Adjusted cost of goods sold	648000

3) Schedule of cost of goods manufactured

Direct material
Beginning raw material	60000
raw material purchase	264000
Raw material available for use	324000
Less: Ending raw material	-35000
Direct material used		289000
Direct labor		25000
Applied overhead		371000
Total manufacturing cost		685000
Beginning work in process		39000
Total Cost of work in process		724000
Less: Ending work in process		-38000
Cost of goods manufactured		686000