Question

prepare schedules of cost of goods manufactured and cost of goods sold and an income statement.

Portal Watch The Grand Tour Season 2 Prime Video Resume Builder Connect Problems Saved Help Save & Exit Submit Check my work 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 $ 217,000 $ 266,000 7 $ 157,000 $363,000 $ 351,000 ces Inventory balances at the beginning and end of the year were as follows: Beginning of Year End of Year Raw materials $ 56,000 $ 38,000 Work in process $ 29,000 Finished goods $ 39,800 The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $661,000; and the net operating income was $33,000. 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.) Prev 1 of 2 !!! Next > otv 16

Answer 1

Kindly complete in required formats as necessary since the same have not been provided with the question.

Superior Company
Schedule of Cost of Goods Manufactured
For the Year Ended December 31
Beginning raw materials $	56000
Add: Raw material purchases	266000
Raw materials available for use	322000
Less: Ending raw materials	38000
Direct materials used		284000
Direct labor (680000 - 284000 - 363000)		33000
Manufacturing overhead applied		363000
Total current manufacturing costs		680000
Add: Beginning work in process (730000 - 680000)		50000
Total cost of work in process (701000 + 29000)		730000
Less: Ending work in process		29000
Cost of goods manufactured*		701000

*Cost of goods manufactured = Cost of goods available for sale - Beginning finished goods inventory = $740000 - $39000 = $701000

Superior Company
Schedule of Cost of Goods Sold
For the Year Ended December 31
Cost of goods manufactured $	701000
Add: Beginning finished goods	39000
Cost of goods available for sale	740000
Less: Ending finished goods (740000 - 661000)	79000
Unadjusted Cost of goods sold $	661000
Less: Overapplied manufacturing overheads (363000 - 351000)	12000
Adjusted Cost of goods sold $	649000

Superior Company
Income Statement
For the Year Ended December 31
Sales revenue		1056000
Cost of goods sold		649000
Gross margin		407000
Less: Operating expenses
Selling expenses	217000
Administrative expenses	157000	374000
Net operating income		33000