Question

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials) $ 210,000 $ 260,000 Selling expenses Purchases of raw materials Direct labox Administrative expenses Manufacturing ovexhead applied to work in process Retual manufacturing overhead cost $ 156,000 $363,000 $ 35,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year $ 50.000 2 $ 32,000 End of Year $36,000 $ 20,000 ? The total manufacturing costs for the year were $670,000; the cost of goods available for sale totaled $740,000, the unadjusted cost of goods sold totaled $664,000; and the net operating Income was $39,000. 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)

superior company provided the following data for the year ended December 31 all raw materials are used in production as direct materials selling expenses 210,000 purchase of raw materials 268,000 direct labor? Administrative expenses 156,000 manufacturing overhead applied to work in process 363,000 actual manufacturing overhead cost 352,000

Answer 1

Requirement (1) Superior Company Income Statement Sales Cost of goods sold Gross Margin Selling and administrative expenses : Selling expenses Administrative expenses $ 1,059,000 $ 654,000 $ 405,000 Requirement (3) Superior Company Schdule of cost of goods manufactured Direct materials: Beginning raw materials inventory $ 58,000 Add : Purchase of raw materials $ 268,000 Total raw materials available $ 326,000 Less : Ending raw materials inventory $ 36,000 Raw materials used in production Direct labour Manufacturing overhead applied to work in process Total manufacturing costs Add : Beginning work in process inventory $ 210,000 $ 156,000 $ 366,000 $ 39,000 Net Operating Income $ 290,000 $ 18,000 $362,000 $ 670,000 $ 66,000 $ 736,000 $ 28,000 $ 708,000 Less : Ending work in process inventory Cost of goods manufactured Requirement (2) Superior Company Schedule of cost of goods sold Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less : Ending finished goods inventory Unadjusted cost of goods sold Less: overapplied overhead Adjusted cost of goods sold $ 32,000 $ 708,000 $ 740,000 $ 76,000 $ 664,000 $ 10,000 $654,000 Note : Please comment down for any further clarifications Note : Please confirm whether ending work in process in the question is $28000, because it is blurred