Question

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials) $ $ 220, see 268,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ $ $ 150, eae 367,000 354,800 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year End of Year $ 55, 36, eee ? $ 23,000 $ 35,000 The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $730,000, the unadjusted cost of goods sold totaled $669,000; and the net operating income was $37.000. The company's underapplied or overapplied

Answer 1

Income statement

Sales		1063000
Cost of goods sold (669000-13000)		656000
Gross profit		407000
Selling and administrative expense
Selling expense	220000
Administrative expense	150000
Total Selling and administrative expense		370000
Net income		37000

Schedule of cost of goods sold

Beginning finished goods	35000
Cost of goods manufactured	695000
Cost of goods available for sale	730000
Ending finished goods	61000
Unadjusted cost of goods sold	669000
Over applied overhead	-13000
Adjusted cost of goods sold	656000

Schedule of cost of goods manufactured

Direct material used
Beginning Raw material	55000
Raw material purchase	268000
Raw material available for use	323000
Ending raw material	-36000
Direct material used		287000
Direct labor		26000
Applied overhead		367000
Total manufacturing cost		680000
Beginning work in process		38000
Total cost of work in process		718000
Less: Ending work in process		23000
Cost of goods manufactured		695000