|
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
|
