Question

Superior Company provided the following data for the year ended December 31 materials w materials are used in production as direct $218.000 $261.00 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 156,000 $373, eee $ 357, Inventory balonces at the beginning and end of the year were as follows: Raw materials in recess Finished goods Beginning of End of Year Year 57.000 $ 30.000 25,000 $ 3.000 The total manufacturing costs for the year were $680,000, the cost of goods available for sale totaled $750,000, the unadjusted cost of goods sold totaled $662,000, and the net operating income was $6,000. 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 in 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. COURS schedule COGM Schedule Prepare an income statement for the year. Superior Company Income Statement Cost of goods sold Cromargin Sing and administrative expenses Belling expenses Administrative

Answer 1

Superior Company Income Statement $1,056,000 $646,000 Sales Less: Cost of goods sold Gross Margin ($374,000 + $36,000) Selling and Administrative expenses : S410,000 Selling expenses Administrative expense $218,000 S156,000 $374,000 $36,000 Net Operating income Superior Company Schedule Cost of Goods Sold Beginning finished goods inventory Add: Cost of goods manufactured $38,000 $712,000 $750,000 Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Less: Overapplied overhead Adjusted cost of goods sold S88,000 $662,000 $16,000 $646,000 Superior Company Cost of Goods Manufactured Schedule Direct Materials : Beginning raw materials inventory Add: Purchases of raw materials Total direct materials available $57,000 $261,000 $318,000 Less: ending inventory of raw materials Total raw materials used in production Direct Labor Manufacturing overhead applied Total manufacturing costs Add: beginning work in process $38,000 $280,000 $27,000 $373,000 S680,000 $57,000 $737,000 Less: ending work in process $25,000 $712,000 Cost of goods manufactured Workings: Schedule of cost of goods sold: Overapplied overhead (S373,000 - 357,000) = S16,000 Income Statement S646,000 Cost of goods sold ($662,000 - $16,000) =