Question

Need help with the 3 parts of this problem.

Superior Company provided the following data for the year ended December 31 (al raw materials are used in production as direct materials s 218,000 267,000 Selling expenses Direct labor Manufacturing overhead applied to vork in process 365,000 Actual manufacturing overhead cost Inventory balances at the beginning and end of the year were as follows Beginning of Year End of Year $ 54,000 39,000 7 32,000 Work in process Pinished goods The total manufacturing costs for the year were $690,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $667,000; and the net operating income was $31,000. 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 Complete this question by entering your answers in the tabs below. Income Statement COGS Scheduke COGM Schedule Prepare an income statement for the year

Answer 1

A	B	C	D
	Superior Company
	Income Statement
4	Sales revenue		1056000
5	Cost of goods sold		656000
6	Gross profit		400000
7	Selling and administrative expenses:
8	Selling expenses	218000
9	Administrative expenses	151000
10
11			369000
12	Net operating income		31000
	Superior Company
	Schedule of Cost of Goods Sold
16	Cost of goods manufactured	704000
17	Add: Beginning finished goods inventory	36000
18	Cost of goods available for sale	740000
19	Less: Ending finished goods inventory	73000
20	Unadjusted cost of goods sold	667000
21	Less: Overapplied manufacturing overhead (365000 - 354000)	11000
22	Adjusted cost of goods sold	656000
	Superior Company
	Schedule of Cost of Goods Manufactured
	Direct materials:
27	Beginning raw materials inventory	54000
28	Add: Purchases of raw materials	267000
29	Total raw materials available	321000
30	Less: Ending raw materials inventory	39000
31	Raw materials used in production		282000
32	Direct labor		43000
33	Manufacturing overheads		365000
34	Total manufacturing costs for the year		690000
35	Add: Beginning work in process inventory		46000
36	Total work in process		736000
37	Less: Ending work in process inventory		32000
38	Cost of goods manufactured		704000

Working:

A	B	C	D
	Superior Company
	Income Statement
4	Sales revenue		=D5+D6
5	Cost of goods sold		656000
6	Gross profit		=D11+D12
7	Selling and administrative expenses:
8	Selling expenses	218000
9	Administrative expenses	151000
10
11			=SUM(C8:C10)
12	Net operating income		31000
	Superior Company
	Schedule of Cost of Goods Sold
16	Cost of goods manufactured	=C18-C17
17	Add: Beginning finished goods inventory	36000
18	Cost of goods available for sale	740000
19	Less: Ending finished goods inventory	=C18-C20
20	Unadjusted cost of goods sold	667000
21	Less: Overapplied manufacturing overhead (365000 - 354000)	=365000-354000
22	Adjusted cost of goods sold	=C20-C21
	Superior Company
	Schedule of Cost of Goods Manufactured
	Direct materials:
27	Beginning raw materials inventory	54000
28	Add: Purchases of raw materials	267000
29	Total raw materials available	=C27+C28
30	Less: Ending raw materials inventory	39000
31	Raw materials used in production		=C29-C30
32	Direct labor		=D34-D31-D33
33	Manufacturing overheads		365000
34	Total manufacturing costs for the year		690000
35	Add: Beginning work in process inventory		=D36-D34
36	Total work in process		=D38+D37
37	Less: Ending work in process inventory		32000
38	Cost of goods manufactured		704000