History Bookmarks Window Help 83 G Sat 903 PM The Following

History Bookmarks Window Help ?? 83% G) Sat 9:03 PM The Following Cost Data To The Ma Help Save & Exit Submit 10 Check my work 20 Problem 3-13 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement LO3-3] points Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct Skipped materials) 215,000 s 266,000 of rav materials Direct labor s 151,000 371,000 353,000 Print Manufacturing overhead applied to vork in process Actual manufacturing overhead cost Inventory balances at the beginning and end of the year were as follows: of Year End of $ 55,000 30,000 $ 26,000 rinished goods s 39,000 The total manufacturing costs for the year were $675,000, the cost of goods available for sale totaled $735,000; the unadjusted cost

Solution

Schedule of Cost of Goods Manufactured Direct Materials: Raw Materials inventory,beginning 55,000 Add:purchases of raw materials 266,000 total raw materials available 321,000 Deduct:Raw materials inventory ,ending 30,000 Raw Materials used in production 291,000 Direct Labor 13,000 Manufacturing overhead Applied to WIP 371,000 total manufacturing costs 675,000 Add:Beginning work in process inventory 47,000 722,000 Deduct:Ending work in process inventory 26,000 Cost of goods manufactured 696,000 Schedule of Cost of Goods sold Finished goods inventory,beginning 39,000 Add:Cost of goods manuactured 696,000 Cost of goods available for sale 735,000 Deduct:Finished goods inventory,ending 75,000 Unadjusted cost of goods sold 660,000 less::overapplied overhead (371000-353,000) 18000 Adjusted cost of goods sold 642,000 Income statement Sales 1,040,000 cost of good sold 642,000 Gross margin 398,000 Selling and administrative expense Selling expenses 215,000 Administrative expense 151,000 366,000 Net operating income 32,000