exercise: Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 140,000 Purchases of raw materials $ 290,000 Direct labor ? Administrative expenses $ 100,000 Manufacturing overhead applied to work in process $ 285,000 Actual manufacturing overhead cost $ 270,000 Beginning and ending inventory balances were as follows: Beginning Ending Raw materials $ 40,000 $ 10,000 Work in process ? $ 35,000 Finished goods $ 50,000 ? The total manufacturing costs added to production 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.)
exercise: Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):
Selling expenses | $ 140,000 |
---|---|
Purchases of raw materials | $ 290,000 |
Direct labor | ? |
Administrative expenses | $ 100,000 |
Manufacturing |
$ 285,000 |
Actual manufacturing overhead cost | $ 270,000 |
Beginning and ending inventory balances were as follows:
Beginning | Ending | |
---|---|---|
Raw materials | $ 40,000 | $ 10,000 |
Work in process | ? | $ 35,000 |
Finished goods | $ 50,000 | ? |
The total
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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