Question

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials $ 211. $265.00 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ $ $ 157, ce 374.000 356.one Inventory balances at the beginning and end of the year were as follows: Beginning of Year $ se, e 39, eee Raw materials Work in process Finished goods 32.ee The total manufacturing costs for the year were $675,000, the cost of goods available for sale totaled $735,000: the unadjusted cost of goods sold totaled $662,000, and the net operating income was $35.000. 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. COGM Income Statement COGS Schedule Schedule Prepare an income statement for the year. - Superior Company Superiore Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses. Selling expenses Administrative expenses het operating income COGS Schedule >

Answer 1

a) Income statement

Sales		1047000
Cost of goods sold (662000-18000)		644000
Gross profit		403000
Selling and administrative expense
Selling expense	211000
Administrative expense	157000
total Selling and administrative expense		368000
Net income		35000

b) Schedule of cost of goods sold

Beginning finished goods	32000
Cost of goods manufactured	703000
Cost of goods available for sale	735000
Less; Ending finished goods	-73000
Unadjusted cost of goods sold	662000
Less: Over applied overhead	-18000
Adjusted cost of goods sold	644000

c) Schedule of cost of goods manufactured

Direct material used
Beginning raw material	50000
Raw material purchase	265000
Raw material available for use	315000
Less; Ending raw material	-39000
Direct material used		276000
Direct labor		25000
Manufacturing overhead applied		374000
Total manufacturing cost		675000
Beginning work in process		56000
Total cost of work in process		731000
Less: Ending work in process		28000
Cost of goods manufactured		703000