Question: superior company provided the following data for the year ended...
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||$||261,000|
|Manufacturing overhead applied to work in process||$||369,000|
|Actual manufacturing overhead cost||$||357,000|
Inventory balances at the beginning and end of the year were as follows:
|Beginning of Year||End of Year|
|Work in process||?||$||31,000|
The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $31,000. 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.)