ezto.mheducation.com/hm.tpx economics book cuNYFirst Login-C Superior Company pr
ID: 2537643 • Letter: E
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ezto.mheducation.com/hm.tpx economics book cuNYFirst Login-C Superior Company provided the following account balances for the year ended December 31 (all raw C -C | blackboard B baruch email va webAssign MindTap Apps materials are used in production as direct materials): $216,000 Selling expenses Purchases of raw materials Direct labor $265,000 $156,000 $335,000 Manufacturing overhead applied to work in process Total actual manufacturing overhead costs $354,000 Inventory balances at the beginning and end of the year were as follows: Beginning of End of Year Year 60,000 $36,000 Raw materials Work in process Finished goods ? $24,000 38,000 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 $669,000: and the net operating income was $31,000. The company's overapplied or underapplied overhead is closed entirely to Cost of Goods Sold. (Hint Prepare the income statement and schedule of cost of goods sold first followed by the schedule ot cost of goods manufactured.) Required: a. Prepare a schedule of cost of goods manufactured. SUPERIOR COMPANY Schedule of Cost Goods Manufactured Direct materials: Raw materials available Raw materials used in production FI F2 F3Explanation / Answer
Schedule of Cost of Goods Manufactured Direct materials: Raw materials inventory, beginning 60000 Add: Purchases of raw materials 265000 Total raw materials available 325000 Deduct: Raw materials inventory, ending 36000 Raw materials used in production 289000 Direct labor 66000 Manufacturing overhead applied to work in process inventory 335000 Total manufacturing costs 690000 Add: Beginning work in process inventory 41000 731000 Deduct: Ending work in process inventory 24000 Cost of goods manufactured 707000 Schedule of Cost of Goods Sold Finished goods inventory, beginning 38000 Add: Cost of goods manufactured 707000 Cost of goods available for sale 745000 Deduct: Finished goods inventory, ending 76000 Unadjusted cost of goods sold 669000 Add: Underapplied overhead 19000 Adjusted cost of goods sold 688000 Income Statement Sales 1091000 Cost of goods sold 688000 Gross margin . 403000 Selling and administrative expenses: Selling expenses 216000 Administrative expense 156000 372000 Net operating income 31000
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