Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):Selling expenses - $212,000Purchases of raw materials - $261,000Direct labor - ?Administrative expenses - $156,000Manufacturing overhead applied to work in process - $367,000Actual manufacturing overhead cost - $353,000Beginning and ending inventory balances were as follows: Beginning of YearEnd of YearRaw materials$54,000$32,000Work in process?$32,000Finished goods$39,000? The total manufacturing costs added to production for the year were $670,000; the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $40,000. The company's underapplied or overapplied overhead is close to the Cost of Goods Sold.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.)

The objective of the question is to prepare the schedules of cost of goods manufactured and cost of…

Answered: Superior Company provided the following…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 6PB: During the year, a company purchased raw materials of $77,321 and incurred direct labor costs of...

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Question

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):

Selling expenses - $212,000
Purchases of raw materials - $261,000
Direct labor - ?
Administrative expenses - $156,000
Manufacturing overhead applied to work in process - $367,000
Actual manufacturing overhead cost - $353,000

Beginning and ending inventory balances were as follows:

	Beginning of Year	End of Year
Raw materials	$54,000	$32,000
Work in process	?	$32,000
Finished goods	$39,000	?

The total manufacturing costs added to production for the year were $670,000; the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $40,000. The company's underapplied or overapplied overhead is close to the Cost of Goods Sold.

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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