Problem 3-13 (Algo) 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): Selling expenses$ 214,000Purchases of raw materials$ 268,000Direct labor?Administrative expenses$ 159,000Manufacturing overhead applied to work in process$ 373,000Actual manufacturing overhead cost$ 355,000 Inventory balances at the beginning and end of the year were as follows: BeginningEndingRaw materials$ 54,000$ 40,000Work in process?$ 24,000Finished goods$ 39,000? The total manufacturing costs added to production for the year were $670,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $33,000. 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.)

An income statement appears to be a financial document that details a business's earnings and…

Answered: Problem 3-13 (Algo) Schedules of Cost…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 30BEB: 2-30 Cost of Goods Manufactured Morning Smiles Coffee Company manufactures Stoneware French Press...

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Problem 3-13 (Algo) 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):

Selling expenses	$ 214,000
Purchases of raw materials	$ 268,000
Direct labor	?
Administrative expenses	$ 159,000
Manufacturing overhead applied to work in process	$ 373,000
Actual manufacturing overhead cost	$ 355,000

Inventory balances at the beginning and end of the year were as follows:

	Beginning	Ending
Raw materials	$ 54,000	$ 40,000
Work in process	?	$ 24,000
Finished goods	$ 39,000	?

The total manufacturing costs added to production for the year were $670,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $33,000. 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.)

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