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 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 $ 29,000 $ 36,000 The total manufacturing costs added to production for the year were $685,000; the cost of goods available for sale totaled $730,000; 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 Statement COGS Schedule COGM Schedule Prepare a schedule of cost of goods manufactured.

Answer 1

Sales 1053000 Selling Expenses 216000 Raw Material Purchases 269000 Direct Labor 29000 Administrative Expenses 151000 Manufacturing overhead applied to work in process 371000 Actula Manufactruing overeheads cost 359000 Total Manufacturring Cost 685000 Cost of Goods available for Sales 730000 Unadjusted Cost of Goods Sold 662000 Net operating income 36000 Inventories Beginning Ending Raw Material 53000 37000 Work in Process 38000 29000 Finished Goods 36000 68000

685000 285000 371000 29000 Calcualtion of Missing Amounts Direct Labor Calculation Total Manufacturring Cost Less : Raw Material Availabe for sales Manufacturing overhads Direct Labor Beginning Work in Process Cost of Goods Available for Sale LESS: Beginning Finished Goods cost of Goods Manufactured ADD: work in Process Ending Less Total Manufactring cost Beginning Work in Process Ending Finished Goods Cost of Goods Available for Sale Less: Unadjusted Cost of Goods Sold Ending Finished Goods 730000 36000 694000 29000 685000 38000 730000 662000 68000

1053000 650000 403000 216000 151000 Answers Income Statement Sales Cost of Goods Sold Gross Margin Selling and Administrstive Expenes Selling Expenses Administrative Expenses Net Oprating Income Cost of Goods Sold Beginning Finished Goods Inventory ADD: Cost of Goods Manufactured Cost of Goods Available for Sale LESS:Ending Finished Goods Invenotry Unadjusted Cost of Goods Sold Less Overapplied Overhead Adjusted cost of Goods Sold 367000 36000 36000 694000 730000 68000 662000 12000 650000

Schedule of Cost of Goods Manuacturing Direct Material Beginning Raw Material 53000 ADD: Purchase of Raw Material 269000 Total raw Material Available 322000 LESS: Ending Raw Material inventory 37000 Raw material Used in Prodcution Direct Labor Manufacturing overheads Applied Total Manufacturing cost ADD Beginning Work in Process 285000 29000 371000 685000 38000 723000 29000 694000 LESS: Ending Work in Process Cost of Goods Manufactured