Problem 3-13 (Algo) Schedules of Cost of Goods Manufactured and Cost o Statement [LO3-3] superior Company provided the following data for the year ended December 31 (all raw materia naterials): Selling expenses Purchases of raw materials $ 217,000 $ 268,000 Direct labor
Problem 3-13 (Algo) Schedules of Cost of Goods Manufactured and Cost o Statement [LO3-3] superior Company provided the following data for the year ended December 31 (all raw materia naterials): Selling expenses Purchases of raw materials $ 217,000 $ 268,000 Direct labor
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Problem 3-13 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income
Statement [L03-3]
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
$ 217,000
$ 268,000
Direct labor
Administrative expenses
Manufacturing overhead applied to work in process
Actual manufacturing overhead cost
$ 159,000
$ 371,000
$ 359,000
Inventory balances at the beginning and end of the year were as follows:
Beginning
$ 54,000
Ending
$ 35,000
$ 23,000
Raw materials
Work in process
Finished goods
$ 39,000
?
The total manufacturing costs added to production for the year were $685,000; the cost of goods available for sale totaled $735,0003;
the unadjusted cost of goods sold totaled $662,000; and the net operating income was $40,000. 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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f61e626-7d33-482f-bf18-423884fdaa73%2F9a5cd212-f73b-4495-9265-9dbf82300ed9%2F550vk9k_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 3-13 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income
Statement [L03-3]
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
$ 217,000
$ 268,000
Direct labor
Administrative expenses
Manufacturing overhead applied to work in process
Actual manufacturing overhead cost
$ 159,000
$ 371,000
$ 359,000
Inventory balances at the beginning and end of the year were as follows:
Beginning
$ 54,000
Ending
$ 35,000
$ 23,000
Raw materials
Work in process
Finished goods
$ 39,000
?
The total manufacturing costs added to production for the year were $685,000; the cost of goods available for sale totaled $735,0003;
the unadjusted cost of goods sold totaled $662,000; and the net operating income was $40,000. 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.)
Transcribed Image Text:Income
COGS
COGM
Statement
Schedule
Schedule
Prepare a schedule of cost of goods manufactured.
Superior Company
Schedule of Cost Goods Manufactured
Beginning work in process inventory
Direct materials:
54,000
268,000
Beginning raw materials inventory
$
Add: Purchases of raw materials
Total raw materials available
322,000
Less: Ending raw materials inventory
(35,000)
Direct materials used in production
$
287,000
Direct labor
27,000
Manufacturing overhead applied to work in process
Total manufacturing costs added to production
Total manufacturing costs to account for
Less: Ending work in process inventory
Cost of goods manufactured
371,000
(23,000)
< COGS Schedule
COGM Schedule
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