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Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): $ 218,000 $ 265,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 152,000 $ 374,000 $ 357,000 Inventory balances at the beginning and end of the year were as follows: Beginning $ 51,000 Ending Raw materials Work in process Finished goods 2$ 33,000 $ 23,000 $ 31,000 The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $730,000 the unadjusted cost of goods sold totaled $665,000; and the net operating income was $33,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): $ 218,000 $ 265,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 152,000 $ 374,000 $ 357,000 Inventory balances at the beginning and end of the year were as follows: Beginning $ 51,000 Ending Raw materials Work in process Finished goods 2$ 33,000 $ 23,000 $ 31,000 The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $730,000 the unadjusted cost of goods sold totaled $665,000; and the net operating income was $33,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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I am unsure about the "Selling Expenses" row that was marked as incorrect.

X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Income СOGS COGM Statement Schedule Schedule Prepare an income statement for the year. Superior Company Income Statement Sales $ 1,051,000 Cost of goods sold (648,000) Gross margin 403,000 Selling and administrative expenses: Administrative expenses $(152,000) Selling expenses (218,000) Selling expenses (370,000) Net operating income $ 33,000 < Income Statement COGS Schedule >
Transcribed Image Text:X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Income СOGS COGM Statement Schedule Schedule Prepare an income statement for the year. Superior Company Income Statement Sales $ 1,051,000 Cost of goods sold (648,000) Gross margin 403,000 Selling and administrative expenses: Administrative expenses $(152,000) Selling expenses (218,000) Selling expenses (370,000) Net operating income $ 33,000 < Income Statement COGS Schedule >
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 218,000 Purchases of raw materials $ 265,000 Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 152,000 $ 374,000 $ 357,000 Inventory balances at the beginning and end of the year were as follows: Beginning $ 51,000 Ending Raw materials $ 33,000 Work in process Finished goods $ 23,000 $ 31,000 The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $665,000; 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.)
Transcribed Image Text:Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 218,000 Purchases of raw materials $ 265,000 Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 152,000 $ 374,000 $ 357,000 Inventory balances at the beginning and end of the year were as follows: Beginning $ 51,000 Ending Raw materials $ 33,000 Work in process Finished goods $ 23,000 $ 31,000 The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $665,000; 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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Remove that wrong entry of selling expenses and leave it blank.

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