Question

prepare schedules of cost of goods manufactured and cost of goods sold and an income statement

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): 217.000 266,000 Selling expenses Purchases of raw materials Direet labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost 157.000 365.000 $ 354.000 Inventory balances at the beginning and end of the year were as follows: Ray Baterials Work in process Tinished goods Beginning of Year End of Year $ 57,000 $31.000 7 $31.000 $36.000 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 $669,000; and the net operating income was $30,000. 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 Serena COGM Prepare an income statement for the year. Superior Company pany Income statement < Prev 1 of 2 Next >

Answer 1

Income Statement
Sales		1062000
Cost of goods sold		658000
Gross margin .		404000
Selling and administrative expenses:
Selling expenses	217000
Administrative expense	157000	374000
Net operating income		30000
Schedule of Cost of Goods Sold
Finished goods inventory, beginning		36000
Add: Cost of goods manufactured		689000
Cost of goods available for sale		725000
Deduct: Finished goods inventory, ending		56000
Unadjusted cost of goods sold		669000
Less: Overapplied overhead		11000
Adjusted cost of goods sold		658000
Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, beginning	57000
Add: Purchases of raw materials	266000
Total raw materials available	323000
Deduct: Raw materials inventory, ending	31000
Raw materials used in production		292000
Direct labor		28000
Manufacturing overhead applied to work in process inventory		365000
Total manufacturing costs		685000
Add: Beginning work in process inventory		35000
		720000
Deduct: Ending work in process inventory		31000
Cost of goods manufactured		689000