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Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):         Selling expenses $ 216,000 Purchases of raw materials $ 263,000 Direct labor   ? Administrative expenses $ 150,000 Manufacturing overhead applied to work in process $ 370,000 Actual manufacturing overhead cost $ 358,000     Inventory balances at the beginning and end of the year were as follows:     Beginning Ending Raw materials $ 54,000   $ 33,000   Work in process   ?   $ 33,000   Finished goods $ 32,000     ?       The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $664,000; and the net operating income was $35,000. The company’s underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare a schedule of cost of goods manufactured.

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):         Selling expenses $ 216,000 Purchases of raw materials $ 263,000 Direct labor   ? Administrative expenses $ 150,000 Manufacturing overhead applied to work in process $ 370,000 Actual manufacturing overhead cost $ 358,000     Inventory balances at the beginning and end of the year were as follows:     Beginning Ending Raw materials $ 54,000   $ 33,000   Work in process   ?   $ 33,000   Finished goods $ 32,000     ?       The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $664,000; and the net operating income was $35,000. The company’s underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare a schedule of cost of goods manufactured.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):

 

     
Selling expenses $ 216,000
Purchases of raw materials $ 263,000
Direct labor   ?
Administrative expenses $ 150,000
Manufacturing overhead applied to work in process $ 370,000
Actual manufacturing overhead cost $ 358,000
 

 

Inventory balances at the beginning and end of the year were as follows:

 

  Beginning Ending
Raw materials $ 54,000   $ 33,000  
Work in process   ?   $ 33,000  
Finished goods $ 32,000     ?  
 

 

The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $664,000; and the net operating income was $35,000. The company’s underapplied or overapplied overhead is closed to Cost of Goods Sold.

Prepare a schedule of cost of goods manufactured.

 

Prepare a schedule of cost of goods manufactured. Superior Company Schedule of Cost Goods Manufactured Beginning work in process inventory 55,000 Direct materials: Beginning raw materials inventory $ 54,000 Add: Purchases of raw materials 263,000 Total raw materials available 317,000 Less: Ending raw materials inventory 33,000 Direct materials used in production $ 284,000 Direct labor 21,000 Manufacturing overhead applied to work in process 370,000 Total manufacturing costs added to production 675,000 Total manufacturing costs to account for 730,000 Less: Ending work in process inventory 33,000 Cost of goods manufactured COGS Schedule COGM Schedule %24
Transcribed Image Text:Prepare a schedule of cost of goods manufactured. Superior Company Schedule of Cost Goods Manufactured Beginning work in process inventory 55,000 Direct materials: Beginning raw materials inventory $ 54,000 Add: Purchases of raw materials 263,000 Total raw materials available 317,000 Less: Ending raw materials inventory 33,000 Direct materials used in production $ 284,000 Direct labor 21,000 Manufacturing overhead applied to work in process 370,000 Total manufacturing costs added to production 675,000 Total manufacturing costs to account for 730,000 Less: Ending work in process inventory 33,000 Cost of goods manufactured COGS Schedule COGM Schedule %24
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