Superior Company provided the following account balances for the year ended Dece
ID: 2416713 • Letter: S
Question
Superior Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):
The total manufacturing costs for the year were $670,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $664,000; and the net operating income was $33,000. The company’s overapplied or underapplied overhead is closed entirely to Cost of Goods Sold.
Prepare a schedule of cost of goods manufactured.
Superior Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):
Explanation / Answer
cost of goods manufactured:
openign direct materials 59,000
Add:Purchases 262,000
Goods available 321,000
less:Ending 31,000
Raw materials used $290,000
Direct labor 43,000
Manufacturing overehead applied 337,000
Total manufacturing cost 670,000
Add:opening Work in process 59,000
729,000
less:Closing work in process 23,000
cost of goods manufactured $706,000
Cost of goods sold
oepning finished goods $34,000
add:Cost of goods manufactured 706,000
Cost of goods avaialble for sale 740,000
less:Finished goods inventory 76,000
Unadjusted cost of goods sold 664,000
add:underapplied overhead 13,000
Adjusted cost of goods sold $677,000
Income statment
Sales 1,081,000
cost of goods sold $677,000
Gross profit $404,000
Selling and administrative expense
Administrative expense 152,000
Selling expense 219,000 $371,000
Net operating income 33,000
cost of goods manufactured:
openign direct materials 59,000
Add:Purchases 262,000
Goods available 321,000
less:Ending 31,000
Raw materials used $290,000
Direct labor 43,000
Manufacturing overehead applied 337,000
Total manufacturing cost 670,000
Add:opening Work in process 59,000
729,000
less:Closing work in process 23,000
cost of goods manufactured $706,000
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