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 Raw materials Work in process Finished goods $ $ Inventory balances at the beginning and end of the year were as follows: Beginning Ending 40,000 $ 10,000 ? 50,000 $ 35,000 $ $ ? 140,000 290,000 ? $ 100,000 $285,000 $ 270,000 The total manufacturing costs added to production for the year were $683,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $660,000; and the net operating income was $30,000. 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 Raw materials Work in process Finished goods $ $ Inventory balances at the beginning and end of the year were as follows: Beginning Ending 40,000 $ 10,000 ? 50,000 $ 35,000 $ $ ? 140,000 290,000 ? $ 100,000 $285,000 $ 270,000 The total manufacturing costs added to production for the year were $683,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $660,000; and the net operating income was $30,000. 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
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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
Purchases of raw materials
Direct labor
Administrative expenses
Manufacturing overhead applied to work in process
Actual manufacturing overhead cost
Raw
materials
Work in
process
Finished
goods
Inventory balances at the beginning and end of the year were as follows:
Beginning Ending
$
$
40,000
?
50,000
$10,000
$ 35,000
$
$
?
140,000
290,000
?
$ 100,000
$285,000
$ 270,000
The total manufacturing costs added to production for the year were $683,000; the cost of goods available for sale
totaled $740,000; the unadjusted cost of goods sold totaled $660,000; and the net operating income was $30,000. 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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