Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 211,000 Purchases of raw materials $ 268,000 Direct labor ? Administrative expenses $ 157,000 Manufacturing overhead applied to work in process $ 370,000 Actual manufacturing overhead cost $ 359,000 Inventory balances at the beginning and end of the year were as follows: Beginning Ending Raw materials $ 54,000 $ 34,000 Work in process ? $ 28,000 Finished goods $ 36,000 ? The total manufacturing costs added to production for the year were $685,000; the cost of goods available for sale totaled $720,000; the unadjusted cost of goods sold totaled $667,000; and the net operating income was $38,000. 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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Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):
Selling expenses | $ | 211,000 |
Purchases of raw materials | $ | 268,000 |
Direct labor | ? | |
Administrative expenses | $ | 157,000 |
Manufacturing |
$ | 370,000 |
Actual manufacturing overhead cost | $ | 359,000 |
Inventory balances at the beginning and end of the year were as follows:
Beginning | Ending | |||||
Raw materials | $ | 54,000 | $ | 34,000 | ||
Work in process | ? | $ | 28,000 | |||
Finished goods | $ | 36,000 | ? | |||
The total
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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