Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 214,000 Purchases of raw materials S 268,000 Direct labor? question mark Administrative expenses $ 158,000 Manufacturing overhead applied to work in process $ 370,000 Actual manufacturing overhead cost $ 358,000 Beginning and ending inventory balances were as follows: Beginning Ending Raw materials S 56, 000 $ 40,000 Work in process ? question mark $ 30,000 Finished goods $ 34,000 ? question mark The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $730, 000; the unadjusted cost of goods sold totaled $665, 000; and the net operating income was S 34,000. 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 $ 214,000 Purchases of raw materials S 268,000 Direct labor? question mark Administrative expenses $ 158,000 Manufacturing overhead applied to work in process $ 370,000 Actual manufacturing overhead cost $ 358,000 Beginning and ending inventory balances were as follows: Beginning Ending Raw materials S 56, 000 $ 40,000 Work in process ? question mark $ 30,000 Finished goods $ 34,000 ? question mark The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $730, 000; the unadjusted cost of goods sold totaled $665, 000; and the net operating income was S 34,000. 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
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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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 $ 214,000 Purchases of raw materials $
268,000 Direct labor? question mark Administrative expenses $ 158,000 Manufacturing overhead applied to work in process $ 370,000 Actual manufacturing overhead cost $ 358, 000 Beginning and
ending inventory balances were as follows: Beginning Ending Raw materials $ 56,000 $ 40,000 Work in process ? question mark $ 30,000 Finished goods $ 34,000 ? question mark The total manufacturing
costs added to production for the year were $680,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $
34,000. 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.)
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