Question: problem 313 schedules of cost of goods manufactured and cost...
Problem 3-13 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO3-3]
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):
|Purchases of raw materials||$||267,000|
|Manufacturing overhead applied to work in process||$||365,000|
|Actual manufacturing overhead cost||$||353,000|
Inventory balances at the beginning and end of the year were as follows:
|Beginning of Year||End of Year|
|Work in process||?||$||32,000|
The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $37,000. The company’s underapplied or overapplied overhead is closed to Cost of Goods Sold.
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.)