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 Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost Beginning and ending Inventory balances were as follows: Raw materials Work in process Finished goods Beginning $57,000 $ 37,000 Ending $ 33,000 $30.000 $ 214,006 $269,000 2 $ 153,000 $370,000 $ 359,000 The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $745,00m the unadjusted cost of goods sold totaled $667,000; and the net operating income was $39,000. 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.)
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 Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost Beginning and ending Inventory balances were as follows: Raw materials Work in process Finished goods Beginning $57,000 $ 37,000 Ending $ 33,000 $30.000 $ 214,006 $269,000 2 $ 153,000 $370,000 $ 359,000 The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $745,00m the unadjusted cost of goods sold totaled $667,000; and the net operating income was $39,000. 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Direct labor
Administrative expenses
Manufacturing overhead applied to work in process
Actual manufacturing overhead cost
Beginning and ending inventory balances were as follows:
Raw materials
Work in process
Finished goods
Beginning
$57,000
$ 37,000
Income
Statement
The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $745,000;
the unadjusted cost of goods sold totaled $667,000; and the net operating income was $39,000. The company's underapplied or
overapplied overhead is closed to Cost of Goods Sold.
Ending
$ 33,000
$30,000
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.)
Complete this question by entering your answers in the tabs below.
COGS
Schedule
Prepare a schedule of cost of goods manufactured.
COGM
Schedule
Beginning work in process inventory
Direct materials
Answer is complete but not entirely correct.
Superior Company
Schedule of Cost Goods Manufactured
✪
Beginning raw materials inventory
Add. Purchases of raw materials
Total raw materials available
Less: Ending raw materials inventory
Direct materials used in production
Direct labor
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
00
269.000 →
326.000
O 33,000
O
33
$ 214,000
$ 269,000
2
$ 153,000
$ 370,000
$ 359,000
S 57.000
16
$293.000
4,000
378,000
S
22,000
675,00
697.000
30,000
$ 667,000 Ⓒ
O
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