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Question & Answer: Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): I…..

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 $ 220,eee $ 261,0ee $ 153,0ee $373,eee $ 353,00e Inventory balances at the beginning and end of the year were as follows Beginning of End of Year Year $ 56,000$34,000 Raw materials Work in process Finished goods P$24,000 $ 38,00e The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $663,000; and the net operating income was $32,000. The companys underapplied or overapplied overhead is closed to Cost of Goods Sold Required Prepare schedules of cost of g?ods 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 an income statement for the year Superior Company Income Statement Selling and administrative expenses

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Inventory balances at the beginning and end of the year were as follows: The total manufacturing costs for the year were $675,000: the cost of goods available for sale totaled $730,000: the unadjusted cost of goods sold totaled $663,000: and the net operating income was $32,000. 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. Complete this question by entering your answers in the tabs below. Prepare an income statement for the year.

Expert Answer

Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, beginning 56000
Add: Purchases of raw materials 261000
Total raw materials available 317000
Deduct: Raw materials inventory, ending 34000
Raw materials used in production 283000
Direct labor 19000
Manufacturing overhead applied to work in process inventory 373000
Total manufacturing costs 675000
Add: Beginning work in process inventory 41000
716000
Deduct: Ending work in process inventory 24000
Cost of goods manufactured 692000
Schedule of Cost of Goods Sold
Finished goods inventory, beginning 38000
Add: Cost of goods manufactured 692000
Cost of goods available for sale 730000
Deduct: Finished goods inventory, ending 67000
Unadjusted cost of goods sold 663000
Less: Overapplied overhead 20000
Adjusted cost of goods sold 643000
Income Statement
Sales 1048000
Cost of goods sold 643000
Gross margin . 405000
Selling and administrative expenses:
Selling expenses 220000
Administrative expense 153000 373000
Net operating income 32000
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