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 Work in process? Finished goods $39,000 $32,000 $32,000 ? 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.)

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
icon
Related questions
Question

answer with working

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
Work in process?
Finished goods $39,000
$32,000
$32,000
?
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.)
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 - $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 Work in process? Finished goods $39,000 $32,000 $32,000 ? 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.)
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning