Superior Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):

Superior Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):

Selling expenses	$	140,000
Purchases of raw materials	$	290,000
Direct labor		?
Administrative expenses	$	100,000
Manufacturing overhead applied to work in process	$	285,000
Total actual manufacturing overhead costs	$	270,000

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

  

	Beginning of Year			End of Year
Raw materials	$	40,000		$	10,000
Work in process		?		$	35,000
Finished goods	$	50,000			?

The total manufacturing costs for the year were $683,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $660,000; and the net operating income was $30,000. The company’s overapplied or underapplied overhead is closed entirely to Cost of Goods Sold.

Required:

a.	Prepare a schedule of cost of goods manufactured.

Explanation:

c.

Cost of goods sold ($660,000 – $15,000) = $645,000