Question

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 212,000 Purchases of raw materials $ 263,000 Direct labor ? Administrative expenses $ 151,000 Manufacturing overhead applied to work in process $ 375,000 Actual manufacturing overhead cost $ 355,000 Inventory balances at the beginning and end of the year were as follows: Beginning of Year End of Year Raw materials $ 53,000 $ 37,000 Work in process ? $ 27,000 Finished goods $ 37,000 ? The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $664,000; and the net operating income was $32,000. 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.)

(PLEASE BREAK IT DOWN DON'T JUST GIVE ME A NUMBER WITHOUT SHOWING THE WORK WHERE ALL NUMBERS CAME FROM PLEASE)

A-HOW DO I CALCULATE SALES?

B-WORK IN PROGRESS BEGINNING

C-FINISHED GOODS ENDING

D-DIRECT LABOR

Answer 1

Superior company Cost of Goods Manufactured Report

Particular	Amount
Beginning raw material inventory	$53,000
Add: Raw material purchased	$263,000
Total raw materials available	$316,000
less: Ending raw material inventory	($37,000)
Raw material used in production (a)	$279,000
Direct labor ( c-a-b)	$26,000
Manufacturing overhead applied to work-in-progress (b)	$375,000
Total current manufacturing costs(c)	$680,000
Add: Beginning work in progress inventory	$55,000
Total work in progress	$735,000
Less: ending work in progress	$27,000
Cost of goods manufactured	$708,000

Superior Company Cost of goods sold

Particular	Amount
Beginning finished goods inventory (a) ( given)	$37,000
Add: Cost of goods manufactured ( b-a)	$708,000
Cost of goods available for sale (b) (given)	$745,000
Less: Closing finished goods inventory (b-d)	$81,000
Unadjusted cost of goods sold (d)	$664,000
Less: over applied overhead ($375,000 - $355,000)	$20,000
Adjusted cost of goods sold	$644,000

Superior company income statement

Particular	Amount	Amount
Sales (b+a)		$1,039,000
Less: Cost of goods sold (a)		$644,000
Gross margin (b)		$395,000
Less: selling and administrative expenses(c+d)		$363,000
Selling expenses(c)	$212,000
Administrative expense (d)	$151,000
Net operating income		$32,000