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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | $ | 216,000 |
| Purchases of raw materials | $ | 263,000 |
| Direct labor | ? | |
| Administrative expenses | $ | 150,000 |
| Manufacturing |
$ | 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
Prepare a schedule of cost of goods manufactured.
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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