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 $ 213,000 $ 260,000 Direct labor ? Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 158,000 $ 370,000 $ 354,000 Inventory balances at the beginning and end of the year were as follows: Beginning $ 59,000 Ending $ 31,000 $ 25,000 Raw materials Work in process Finished goods $ 37,000 ? The total manufacturing costs added to production for the year were $670,000; the cost of goods available for sale totaled $720,000 the unadjusted cost overapplied overhead is closed to Cost of Goods Sold. goods sold total $661,000; and the net operating income was $37,000. The company's underapplied or 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.)
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

![**Educational Website Transcription**
**Instructions:**
Prepare schedules of cost of goods manufactured and cost of goods sold, along with an income statement. *(Hint: Begin with the income statement and schedule of cost of goods sold, followed by the schedule of cost of goods manufactured.)*
**Task:**
Complete this question by entering your answers in the tabs below.
**Tabs:**
1. Income Statement
2. COGS (Cost of Goods Sold) Schedule
3. COGM (Cost of Goods Manufactured) Schedule
**Income Statement Preparation:**
**Superior Company**
**Income Statement**
- **Sales**: [Enter amount]
- **Cost of Goods Sold**: [Enter amount]
- **Gross Margin**: 0
**Selling and Administrative Expenses:**
- **Selling Expenses**: [Enter amount]
- **Administrative Expenses**: [Enter amount]
- **Net Operating Income**: 0
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- COGS Schedule >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e3d5f65-1af0-4ffd-8bd0-5630e9d48d24%2F4b2003a5-af25-4170-a9ee-0ef2fdf3c965%2Fsc5nqd_processed.png&w=3840&q=75)
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