Superior Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 213,000 Purchases of raw materials $ 268,000 Direct labor ? Administrative expenses $ 154,000 Manufacturing overhead applied to work in process $ 331,000 Total actual manufacturing overhead costs $ 351,000 Inventory balances at the beginning and end of the year were as follows: Beginning of Year End of Year Raw materials $ 58,000 $ 39,000 Work in process ? $ 31,000 Finished goods $ 31,000 ? The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $668,000; and the net operating income was $35,000. The companyâs overapplied or underapplied overhead is closed entirely to Cost of Goods Sold. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.) Required: a. Prepare a schedule of cost of goods manufactured. b. Prepare a schedule of cost of goods sold. c. Prepare an income statement for the year.
Superior Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 213,000 Purchases of raw materials $ 268,000 Direct labor ? Administrative expenses $ 154,000 Manufacturing overhead applied to work in process $ 331,000 Total actual manufacturing overhead costs $ 351,000 Inventory balances at the beginning and end of the year were as follows: Beginning of Year End of Year Raw materials $ 58,000 $ 39,000 Work in process ? $ 31,000 Finished goods $ 31,000 ? The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $668,000; and the net operating income was $35,000. The companyâs overapplied or underapplied overhead is closed entirely to Cost of Goods Sold. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.) Required: a. Prepare a schedule of cost of goods manufactured. b. Prepare a schedule of cost of goods sold. c. Prepare an income statement for the year.
Related questions
Superior Company provided the following account balances for theyear ended December 31 (all raw materials are used in production asdirect materials): |
| Sellingexpenses | $ | 219,000 | |
| Purchases of rawmaterials | $ | 262,000 | |
| Direct labor | ? | ||
| Administrativeexpenses | $ | 152,000 | |
| Manufacturingoverhead applied to work in process | $ | 337,000 | |
| Total actualmanufacturing overhead costs | $ | 350,000 | |
| Inventory balances at thebeginning and end of the year were as follows: |
| Beginning of Year | End of Year | |||||
| Raw materials | $ | 59,000 | $ | 31,000 | ||
| Work in process | ? | $ | 23,000 | |||
| Finished goods | $ | 34,000 | ? | |||
The total manufacturing costs for the year were $670,000; thecost of goods available for sale totaled $740,000; the unadjustedcost of goods sold totaled $664,000; and the net operating incomewas $33,000. The companyâs overapplied or underapplied overhead isclosed entirely to Cost of Goods Sold. |
| Required: |
| a. | Prepare a schedule of cost of goods manufactured.
|
Superior Company provided the following account balances for theyear ended December 31 (all raw materials are used in production asdirect materials): |
| Sellingexpenses | $ | 212,000 |
| Purchases of rawmaterials | $ | 269,000 |
| Direct labor | ? | |
| Administrativeexpenses | $ | 158,000 |
| Manufacturingoverhead applied to work in process | $ | 335,000 |
| Total actualmanufacturing overhead costs | $ | 358,000 |
| Inventory balances at thebeginning and end of the year were as follows: |
| Beginning of Year | End of Year | |||||
| Raw materials | $ | 51,000 | $ | 35,000 | ||
| Work in process | ? | $ | 28,000 | |||
| Finished goods | $ | 34,000 | ? | |||
The total manufacturing costs for the year were $685,000; thecost of goods available for sale totaled $735,000; the unadjustedcost of goods sold totaled $669,000; and the net operating incomewas $39,000. The companyâs overapplied or underapplied overhead isclosed entirely to Cost of Goods Sold. |
| Required: |
| a. | Prepare a schedule of cost ofgoods manufactured. |
| b. | Prepare a schedule of cost of goods sold. |
| c. | Prepare an income statement for the year. |
