Question

Question 1:-Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):

   Selling expenses$214,000Purchases of raw materials$269,000Direct labor ?Administrative expenses$152,000Manufacturing overhead applied to work in process$368,000Actual manufacturing overhead cost$351,000

Inventory balances at the beginning and end of the year were as follows:

Beginning of YearEnd of YearRaw materials$55,000 $31,000 Work in process ? $25,000 Finished goods$30,000  ?

The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $720,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $38,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Make 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.)

So need to solve and put entries in these schedules:-

Income Statement

• COGS Schedule
• COGM Schedule

Answer 1