Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):
Selling expenses | $ | 218,000 |
Purchases of raw materials | $ | 263,000 |
Direct labor | ? | |
Administrative expenses | $ | 160,000 |
Manufacturing overhead applied to work in process | $ | 366,000 |
Actual manufacturing overhead cost | $ | 351,000 |
Inventory balances at the beginning and end of the year were as follows:
Beginning | Ending | |||||
Raw materials | $ | 51,000 | $ | 40,000 | ||
Work in process | ? | $ | 26,000 | |||
Finished goods | $ | 30,000 | ? | |||
The total manufacturing costs added to production for the year were $670,000; 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.
Prepare an income statement for the year.
Complete this question by entering your answers in the tabs below.
Prepare an income statement for the year.
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Solution
Superior company | ||
Income statement | ||
Sales revenue | $ 1,062,000.00 | |
Less: Cost of goods sold | $ 652,000.00 | |
Gross profit | $ 410,000.00 | |
Selling and administrative expenses | ||
Selling expenses | $ 218,000.00 | |
Administrative expenses' | $ 160,000.00 | $ 378,000.00 |
Net income | $ 32,000.00 |
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Superior company | ||
Schedule of cost of goods sold | ||
Beginning Finished Goods Inventory | $ 30,000.00 | |
Add: Cost of goods manufactured | $ 695,000.00 | |
Goods Available for sale | $ 725,000.00 | |
Less :Ending Finished goods Inventory | $ 58,000.00 | |
Unadjusted Cost of Goods Sold | $ 667,000.00 | |
Overapplied Manufacturing overheads | $ (15,000.00) | |
Adjusted cost of goods sold | $ 652,000.00 |
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Superior company | ||
Schedule of Cost of Goods Manufactured | ||
Direct Material | ||
Raw material Inventory Beginning | $ 51,000.00 | |
Raw material Purchased | $ 263,000.00 | |
Raw material available for use | $ 314,000.00 | |
Less: Raw material Inventory Ending | $ 40,000.00 | |
Direct Material Used | $ 274,000.00 | |
Direct labor | $ 30,000.00 | |
Total Manufacturing overheads | $ 366,000.00 | |
Total manufacturing Cost During the month | $ 670,000.00 | |
Add: Work in progess Beginning | $ 51,000.00 | |
Total Work in Process | $ 721,000.00 | |
Less: Work in progress Ending | $ 26,000.00 | |
Cost of Goods Manufactured | $ 695,000.00 |
Superior Company provided the following data for the year ended December 31 (all raw materials are...
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 218,000 $ 265,000 ? $ 154,000 $ 364,000 $ 351,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year End of Year...
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 220,000 $ 263,000 ? $ 158,000 $ 379,000 $ 359,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year $ 59,000 ?...
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): $ 217,000 $ 263,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 158,000 $ 375,000 $ 355,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year End of Year $...
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): points $ $ 216,000 264,000 (8 02:34:27 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ $ $ 151,000 373,000 357,000 Skipped Inventory balances at the beginning and end of the year were as follows: eBook Raw materials Work in process Finished goods Beginning of...
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): $ $ 213,000 268,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 157,000 $ 363,000 $ 351,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year End of Year $...
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 216,000 Purchases of raw materials $ 263,000 Direct labor ? Administrative expenses $ 151,000 Manufacturing overhead applied to work in process $ 371,000 Actual manufacturing overhead cost $ 351,000 Inventory balances at the beginning and end of the year were as follows: Beginning of Year End of Year Raw materials $ 51,000 $ 40,000 Work...
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): $ $ 219,000 267,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ $ $ 153,000 362,000 351,000 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 $ 55,000...
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 216,000 $ 269,000 ? $ 151,000 $ 371,000 $ 359,000 Inventory balances at the beginning and end of the year were as follows: Beginning $ 53,000 Raw materials Work in process Finished goods Ending $ 37,000...
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): $ 214,000 $ 266,000 ? Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 154,000 $ 374,000 $ 359,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year $ 53,000 ?...
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials) $ $ 219, eee 268,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 159,000 $ 369, $352, eee Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year End of Year...