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 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning $ 59,000 7 $ 32,000 Ending $32,000 $ 29,000 $ 210,000 $ 269,000 7 $ 159,000 $ 362,000 $ 352,000 The total manufacturing costs added to production for the year were $670,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $669,000; 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.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
Inventory balances at the beginning and end of the year were as follows:
Raw materials
Work in process
Finished goods
Beginning
$ 59,000
2
$ 32,000
Ending
$ 32,000
$ 29,000
Income
COGS
COGM
Statement Schedule Schedule
Prepare an income statement for the year.
Superior Company
Income Statement
Sales
Cost of goods sold
$ 210,000
$ 269,000
2
The total manufacturing costs added to production for the year were $670,000; the cost of goods available for sale totaled $725,000;
the unadjusted cost of goods sold totaled $669,000; and the net operating income was $39,000. The company's underapplied or
overapplied overhead is closed to Cost of Goods Sold.
$ 159,000
$362,000
$ 352,000
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.)
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Transcribed Image Text: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 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning $ 59,000 2 $ 32,000 Ending $ 32,000 $ 29,000 Income COGS COGM Statement Schedule Schedule Prepare an income statement for the year. Superior Company Income Statement Sales Cost of goods sold $ 210,000 $ 269,000 2 The total manufacturing costs added to production for the year were $670,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $39,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold. $ 159,000 $362,000 $ 352,000 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.) Complete this question by entering your answers in the tabs below. < Prev 8 of 8 # Next
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