Superior Company provided the following data for the year ended December 31 (all

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 Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 212,000 $ 265,000 $ 158,000 378,000 $ 359,000 Inventory balances at the beginning and end of the year were as follows Beginning of Year End of Year Raw materials Work in process Pinished goods $ 50,000 38,000 32,000 40,000 The total manufacturing costs for the year were $690,000; the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $661,000; and the net operating income was $32,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Explanation / Answer

INCOME STATEMENT Sales 1044000 Cost of goods sold 642000 Gross profit 402000 Selling and administrative expenses: Selling expenses 212000 Administrative expenses 158000 370000 Net operating income 32000 SCHEDULE OF COST OF GOODS SOLD Beginning inventory of finished goods 40000 Add: Cost of goods manufactured 705000 Cost of goods available for sale 745000 Less: Ending inventory of finished goods 84000 Unadjusted cost of goods sold 661000 Less: Overapplied overhead (378000-359000) 19000 Adjusted cost of goods sold 642000 COST OF GOODS MANUFACTURED Beginning inventory of work in process 47000 Direct materials used: Beginning inventory of raw materials 50000 Purchases of raw materials 265000 Total raw materials available for use 315000 Less: Ending inventory of raw materials 38000 Direct materials used 277000 Direct labor 35000 Manufacturing overhead applied 378000 Total manufacturing costs for the year 690000 Total manufacturing cost 737000 Less: Ending inventory of work in process 32000 Cost of goods manufactured 705000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.