PROBLEM 3–13 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement LO3-3Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):Selling expenses$140,000Purchases of raw materials .$290,000Direct labor.Administrative expenses.$100,000Manufacturing overhead applied to work in process.$285,000Actual manufacturing overhead cost.$270,000Inventory balances at the beginning and end of the year were as follows:Beginning EndingRaw materials.$40,000 $10,000Work in process.? $35,000Finished 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; theunadjusted cost of goods sold totaled $660,000; and the net operating income was $30,000. The company's underapplied or overappliedoverhead 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 andschedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)

Solution:- First we need to calculate schedule of cost of goods manufactured as follows under:-

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.)

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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Computing cost of goods manufactured and cost of goods sold Use the following information for a…

A: Cost of goods manufactured is the total cost incurred to manufacture or produce the goods for a…

Q: FISCHER CORPORATION Schedule of Cost of Goods Manufactured For the Year Ended December 31, Year 2…

A: Cost of goods manufactured is the total cost incurred for manufacturing a product .Direct…

Q: The following transactions occured in April at Steve's Cabinets, a custom cabinet firm. 1. Purchased…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: How is total cost of goods sold and the total amount billed to customers calculated?

A: A job cost sheet is a sheet which is used to record the manufacturing costs .

Q: Explain in detail how a manufacturing company calculates Cost of Goods Manufactured and Cost of…

A: Manufacturing companies are those companies which are engaged in conversion of raw material into…

Q: I need support with the statement of cost of goods manufactured and he income statement. Please…

A: Raw materials: It is the basic input required to manufacture the finished products. The raw…

Q: What is the link that connects the schedule of cost of goods manufactured to the schedule of cost of…

A: Schedule of Cost of goods manufactured: Cost of goods manufactured can be defined as the total…

Q: Enumerate the five parts of cost of goods sold section of the income statement.

A: Cost of goods sold: It is the cost value of the goods which has been sold.

Q: Prepare a proper title for the annual schedule of cost of goods manufactured of Google. Does the…

A: The proper title for the annual schedule of cost of goods manufactured by Google : Cost of Goods…

Q: A product cost is Oa. shown with operating expenses on the income statement Ob. shown with current…

A: The cost is classified into two categories i.e product cost and period cost. The product cost…

Q: Valley Company's adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Debit…

A: The income statement is one of the essential parts of the financial statements used for reporting…

Q: Inventories Beginning Ending Materials $50,000 $25,000 Work in progress $100,000 $65,000 Finished…

A: Material used=Beginning Material+Purchases-Ending Material=50000+155000-25000=$180,000

Q: Amazing Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory…

A: Preparation of schedule of goods manufactured , schedule of cost of goods manufactured and income…

Q: a. Total product cost a. Average cost per unit b. Cost of good sold c. Ending inventory d. Net…

A: Working note:Calculation of depreciation on manufacturing equipment:Depreciation = (cost - salvage…

Q: 2. The following information was extracted from the books of Bass Il manufacturer of loafers:…

A: The question is based on the concept of Cost Accounting.

Q: If selling and administrative expenses are allocated to different products, they should be reported…

A: Period costs: These costs are not related to inventory, hence, they are not added to inventory…

Q: FINAL OUTPUT wpet or pecnbe Output No. 1 Ellen Joyce Company is engaged in the manufacture of…

A: Cost of goods manufactured(COGM) includes all the direct costs incurred and overheads incurred in…

Q: Required information [The following information applies to the questions displayed below.] Laker…

A: SOLUTION. LIFO METHOD ASSUME THAT THE MOST RECENT PRODUCT ADDED THE COMPANY'S INVENTORY HAVE BEEN…

Q: The ending inventories for materials, work in process, and finished goods are reported on the…

A: Introduction: Income statement: All revenues and expenses are shown in Income statement. Deduction…

Q: January 20 January 25 January 30 Purchase Sales Purchase 110 units e $ 6.00 = 660 130 units $ 16.00…

A: Under FIFO cost assumption, the inventory acquired first, will be sold first.

Q: Laker Company reported the following January purchases and sales data for its only product. The…

A: Date Goods Purchased Cost Of Goods Sold Inventory Balance # of units Cost per…

Q: Huckvale Corporation manufactures custom cabinets for kitchens. It uses a normal-costing system with…

A: A costing system is a structured method businesses use to allocate costs to products, services, or…

Q: Hello, can you please complete the steps below for the following question on the photo. Thank you…

A: INTRODUCTION: RAW MATERIAL AND WORK IN PROGRESS AND FINISHED GOODS: Every product in the process…

Q: Required information [The following information applies to the questions displayed below.] Laker…

A: Using LIFO method, the new units are sold first and old units are sold later. LIFO stands for Last…

Q: Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased…

A: Journal entries are the transactions which are recorded in the books to maintain a proper record of…

Q: Presented below are the components in determining cost of goods sold. Determine the missing amounts.

Q: 1. Purchased $20,500 of materials on account. 2. Issued $1,250 of supplles from the materials…

A: The question is based on the concept of Cost Accounting.

Q: Requirement 3. Calculate the cost of goods sold for each company Begin by calculating the cost of…

A: Cost of merchandise sold can be defined as the direct cost of producing the products or services. It…

Q: 1. Prepare a statement of cost of goods manufactured. 2. Prepare a statement of cost of go

A: Statement of Cost of Goods Manufactured: Cost of goods manufactured can be defined as the total…

Q: How should you compute the number that appears as "cost of good sold" in a common-size income…

A: Lets understand the basics.There are two type of analysis are made.(1) Verticle analysis(2)…

Q: I need assistance with the Balance Sheet, Income Statements, and Schedule of Goods Manufactured.…

A: Balance sheet: The balance sheet shows the financial position of the company by recording all the…

Q: A. Prepare journal entries to record the transactions. B. Prepare T-accounts to show the flow of…

A: Journal is the recording or financial transactions which are to be posted in the T accounts in order…

Q: Indicate whether the following financial statement items apply to a manufacturer, a merchandiser, or…

A: Cost of goods manufactured: Cost of goods manufactured can be defined as total cost incurred in…

Q: All of the following are a part of calculating Cost of Goods Sold EXCEPT: O Work In Process…

A: Costs of goods sold: It is a cost of sale and deviation between the sale and gross profit/loss; it…

Q: Operating expenses are comprised of the following: General and Administrative Expense, Cost of…

A: Solution Concept Cost of goods sold includes the direct material and direct labor and shall be…

Q: Direct material: Direct labor Manufacturing overhead: Total manufacturing overhead Total…

A: Cost of Goods Manufactured: The term "Cost of Goods Manufactured" (COGM) is used in management…

Q: Multiple Choice) A multi-step income statement ________. A. separates cost of goods sold from…

A: In multi step income statement the operating results are separately shown.It doesn't consider…

Q: 5 B 9 0 B The following accounts contain information about January's production for Brotto Bold…

A: Income statement is prepared after preparing the schedule for the cost of goods manufactured and the…

Q: SV Merchandising Store Trial Balance 31-Jul-18 Periodic Acct. # Account Title Debit Credit 45,120.4…

A: Calculation of Cost of Goods Sold Cost of Goods Sold Amount Purchases 110,000.00…

Q: 2. A manufacturing company reports cost of goods manufactured as an) A current asset on the balance…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: A multi- step income statement ___________. A. Seperates cost of goods sold from operating…

A: Mutli step income statement means an income statement where first gross profit is calculated by…

Question

PROBLEM 3–13 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement LO3-3
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):
Selling expenses
$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
Inventory balances at the beginning and end of the year 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.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Please prepare a Statement of Cost of Goods Manufactured
Define Cost of goods sold at normal and Cost of goods sold at actual.
What are the journal entries, posting to t-accounts and statement of cost of goods sold fo this prblm?
A-Compute cost of goods manufactured. B- Compute cost of goods Sold. Complete both A and B
Show your solution in good accounting form How much is the cost of goods manufactured?
In a cost sheet for a manufactured product the profit perventage is typically added to the figure to arrive at the sales prices
When an entity prepares financial statements in a current cost basis, how is the cost of goods sold computed? *
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used $121,000 61,000 7,600 111,000 24,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $46,000 15,000 22,000 36,000 51,000 Work in process inventory was $13,000 at January 1 and $16,600 at December 31. Finished goods inventory was $61,000 at January 1 and $45,700 at December 31.
A list of accounts and their values are given above. From this information, prepare a cost of goods manufactured schedule.
Period costs include: a. current liabilities on the balance sheet b. operating costs that are shown on the income statement in the period in which they are incurred c. current assets on the balance sheet d. operating costs that are shown on the income statement when the products are sold
Instructions: (a) Prepare the cost of goods manufactured schedule. (b) Compute the cost of goods sold.
Consider the following data (photo)Required: Calculate the cost of goods manufactured