Question

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $212,000 Purchases of raw materials $261,000 Direct labor Administrative expenses $152,000 Manufacturing overhead applied to work in e $368,000 process Actual manufacturing overhead cost $355,000 Inventory balances at the beginning and end of the year were as follows: Beginning End of of Year Year Raw materials $56,000 $34,000 Work in ? $26,000 process Finished goods $32,000 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 $662,000; and the net operating income was $36,000. 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 COGS COGM Statem... Schedule Schedule Prepare an income statement for the year. Superior Company Income Statement Selling and administrative expenses: < Income Statement COGS Schedule >

PLEASE PROVIDE INCOME STATEMENT AND COGS SCHED!!

Answer 1

SUPERIOR COMPANY Income Statement Sales Less: adjusted Cost of Goods Sold Gross Margin Selling and administrative Expenses Selling Expenses $ Administrative Expenses S S S S 1.049,000 649,000 400,000 212.000 152,000 S S 364.000 36,000 Net Operative Income SUPERIOR COMPANY Schedule Cost of goods Sold Finished goods inventory, beginning $ 32,000 Add: Cost of Goods manufactured S 693,000 Cost of goods available for sale S 725,000 Less: Finished goods inventory, ending $ 63,000 Unadjusted cost of goods sold $ 662,000 Less: Over applied overhead $ 13,000 Adjusted Cost of goods sold $ 649,000 Note : Over Applied Overhead Manufacturing overhead applied to work in process - Actual manufacturing overhaed cost =$368,000-$355,000 = $13,000

SUPERIOR COMPANY Schedule Cost of goods Manufactured Schedule Direct Material: Raw Material inventory Beginning S 56.000 Add: Raw materials purchases $ 261.000 Raw materials available S 317.000 Less: Raw materials inventory Ending S 34.000 Raw Materials used in production Direct Labour Manufacturing overhead applied to work in Process Total Manufacturing Costs Add: Work in process inventory Beginning Less: work in process inventory Ending Cost of goods Manufactured $ $ S $ $ $ $ 283,000 34,000 368,000 685,000 34,000 26,000 693,000