Question

Assignment Print View Page 1 of 2 Award 5.00 points Superior Company provided the following data for the year ended December 31 (allraw materials are used in productions Selling expenses Purchases of row 5 $ 212.000 262.000 s 160000 Administrative expenses Manufacturing werd door in process Actual manufacturing overhead cost Inventory balances at the beginning and end of the year were as follows: Beginning of Raw materials Work in process Finished goods $ $ 51.000 7 34.000 End of Year 30,000 31.000 The total manufacturing costs for the year were 5680.000, the cost of goods available for sale totaled $725 000. the unadiusted cost of goods sold totaled $667.000, and the net operating income was $37.000. 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 Seling and administrative expenses neme Statement COGS Schedule >

Answer 1

Answer- Superior Company

  Schedule of Cost of Goods Manufactured

Direct materials:
Raw materials inventory, beginning	51,000
Add: Purchases of raw materials	262,000
Total raw materials available for use	313,000
Deduct: Raw materials inventory, ending	30,000
Raw materials used in production		283,000
Direct labor		30,000	(680,000-283,000-367,000)
Manufacturing overhead applied to work in process inventory		367,000
Total manufacturing costs		680,000	(725,000-34,000= 691,000)
Add: Beginning work in process inventory		42,000	(31,000+691,000-680,000)
		722,000
Deduct: Ending work in process inventory		31,000
Cost of goods manufactured		691,000

b-

Schedule of Cost of Goods Sold
Finished goods inventory, beginning		34,000
Add: Cost of goods manufactured		691,000	(725,000-34,000)
Cost of goods available for sale		725000
Deduct: Finished goods inventory, ending		58,000	(725,000-667,000)
Unadjusted cost of goods sold		667,000
Less: Overapplied overhead		15,000	(367,000-352,000)
Adjusted cost of goods sold		652,000	(667,000-15,000)

c-

Income Statement
Sales		1,061000	(652,000+409,000)
Cost of goods sold		652,000
Gross margin .		409,000	(367000+37000)
Selling and administrative expenses:
Selling expenses	212,000
Administrative expense	160,000	372,000
Net operating income		37,000

Sales Revenue= Gross margin + Cost of goods sold

=$409,000+$652,000

=$1,061,000

Gross margin= Net income + Selling expenses+ administrative expenses

=$37,000+$212,000+$160,000

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=$409,000