Question

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

Selling Expense	$214,000
Purchase of Raw Materials	$264,000
Direct Labor	?
Administrative Expense	$160,000
Manufacturing Overhead applied to works in progress	$367,000
Actual Manufacturing overhead cost	$355,000

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

	Beginning	Ending
Raw Materials	$58,000	$32,000
Work in Progress	?	$29,000
Finished Goods	$33,000	?

The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $664,000; 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.)

These three charts are the requirments for this question.

requirment 1. Income Statement

SUPERIOR COMPNAY
INCOME STATEMENT

?	N/a	?
?	N/a	?
?	N/a	?
Selling and administrative cost	N/a	N/a
?	?	N/a
?	?	N/a
?	?	N/a
?	?	?
?	N/a	?

The options to fill in the first coloum are: Accounts payable, Accounts recievabel, accumalated depreciation, administrative expense, cash, cost of goods sold, depreciation expense, finished goods, manufacturing overhead, raw materials, sales, selling expesnes, wages payable, work in progess

Rquiremnt 2.

Superio Company  

Schedule of cost of good sold

? 1	?
	?
? 1	?
	?
? 1	?
	?
Adjusted cost of goods sold	?

? 1 has these for the fill in options: beggining finished goods inventroy, cost of good avaliable for sale, direct labor, raw material inventory beginning, raw material inventory ending, unadjusted cost of goods sold

? 2 has these for the fill in options: Add cost of goods maufactured, add ending finshed goods inventory, add overapplied overhead, add underapplied overhead, less cost of goods manufacterd, less ending finished goods inventory, less overapplied overhead, less underapplied overhead

Requirment 3-

Superio company

Schedule of cost good maufacterd

? 1	N/a	n/a	?
Direct Material	N/A	n/a	n/a
? 1	?	n/a	n/a
? 2	?	n/a	n/a
Total Raw Material availbale	?	n/a	n/a
? 2	?	n/a	n/a
Direct material used in production	n/a	?	n/a
? 1	n/a	?	n/a
? 1	n/a	?	n/a
Total manufacturing cost added to production	n/a	n/a	?
total manufacturing cost to account for	n/a	n/a	?
? 2	n/a	n/a	?
Cost of goods manufactured	n/a	n/a	?

To fill in ? 1 the options are: begning works in progress, ending raw materials in inventroy, ending work in progress inventory, manufactured overhead cost, purchase of raw materials

To fill ? 2 the options are: add begning works in progress, add ending raw materials in inventroy, add ending work in progress inventory, add manufactured overhead cost, add purchase of raw materials, lessbegning works in progress, less ending raw materials in inventroy, less ending work in progress inventory, less manufactured overhead cost, less purchase of raw materials.

I know this is a lot but it is all one questions of my homework. To whoever helps me with this thank you so much!

Answer 1

Income Statement
Sales		1064000
Cost of goods sold		652000
Gross margin .		412000
Selling and administrative expenses:
Selling expenses	214000
Administrative expense	160000	374000
Net operating income		38000
Schedule of Cost of Goods Sold
Finished goods inventory, beginning		33000
Add: Cost of goods manufactured		702000
Cost of goods available for sale		735000
Deduct: Finished goods inventory, ending		71000
Unadjusted cost of goods sold		664000
Less: Overapplied overhead		12000
Adjusted cost of goods sold		652000
Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, beginning	58000
Add: Purchases of raw materials	264000
Total raw materials available	322000
Deduct: Raw materials inventory, ending	32000
Raw materials used in production		290000
Direct labor		23000
Manufacturing overhead applied to work in process inventory		367000
Total manufacturing costs		680000
Add: Beginning work in process inventory		51000
		731000
Deduct: Ending work in process inventory		29000
Cost of goods manufactured		702000