Superior Company provided the following data for the year ended December 31 (all

Question

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 $ 140,000 $ 290,000 100,000 $ 285, 000 $ 270,000 Inventory balances at the beginning and end of the year were as follows Beginning of Year End of Year Raw materials Work in process Finished goods $40,000 10,000 ? 35,000 $ 50,000 The total manufacturing costs for the year were $683,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $660,000; and the net operating income was $30,000. 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.)

Explanation / Answer

Please please appreciate the efforts by marking answer helpful, thanks  

Schedule of Cost of Goods Manufactured Direct materials: Raw materials inventory, beginning $    40,000.00 Add: Purchases of raw materials $2,90,000.00 Total raw materials available $3,30,000.00 Deduct: Raw materials inventory, ending $ -10,000.00 Raw materials used in production $   3,20,000.00 Direct labor $       78,000.00 Manufacturing overhead applied to work in process inventory $   2,85,000.00 Total manufacturing costs $   6,83,000.00 Add: Beginning work in process inventory $       42,000.00 $   7,25,000.00 Deduct: Ending work in process inventory $       35,000.00 Cost of goods manufactured $   6,90,000.00 Schedule of Cost of Goods Sold Finished goods inventory, beginning $       50,000.00 Add: Cost of goods manufactured $   6,90,000.00 Cost of goods available for sale $   7,40,000.00 Deduct: Finished goods inventory, ending $       80,000.00 Unadjusted cost of goods sold $   6,60,000.00 Less: Overapplied overhead $       15,000.00 Adjusted cost of goods sold $   6,45,000.00 Income Statement Sales $   9,15,000.00 Cost of goods sold $   6,45,000.00 Gross margin . $   2,70,000.00 Selling and administrative expenses: Selling expenses $1,40,000.00 Administrative expense $1,00,000.00 $   2,40,000.00 Net operating income $       30,000.00

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.