value: 10.00 points Superior Company provided the following account balances for

Question

value: 10.00 points Superior Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials): $211,000 Selling expenses Purchases of raw materials $266,000 Direct labor Administrative expenses Manufacturing overhead applied to $334,000 $153,000 work in process Total actual manufacturing $356,000 overhead costs Inventory balances at the beginning and end of the year were as follows: Beginning of Year S59,000 End of Year $39,000 Raw materials Work in process Finished goods ? $27,000 $32,000 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 $662,000; and the net operating income was $31,000. The company's 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 e of Cost Goods Manufactured Direct materials: Raw materials available Raw materials used in production Total manufacturing costs Cost of goods manufactured

Explanation / Answer

Required statements are as prepared below:

Superior Company Statement of Cost of goods manufactured For the year ending December 31 Particulars Amount ($) Amount ($) Opening Material 59,000 Add: Direct Material purchase 266,000 Cost of material available for use 325,000 Less: Closing Direct Material 39,000 Cost of Direct Material Used 286,000 Direct Labour Cost (674,000-334,000-286,000) 55,000 Manufacturing Overhead applied to WIP inventory 334,000 Total manufacturing Costs 675,000 Add: Beginning Work in Process (692,000+27,000-675,000) 44,000 Less: Closing Work in Process 27,000 Cost of goods manufactured 692,000

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