PROBLEM 3–13 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement LO3-3Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):Selling expenses$140,000Purchases of raw materials .$290,000Direct labor.Administrative expenses.$100,000Manufacturing overhead applied to work in process.$285,000Actual manufacturing overhead cost.$270,000Inventory balances at the beginning and end of the year were as follows:Beginning EndingRaw materials.$40,000 $10,000Work in process.? $35,000Finished goods..$50,000?The total manufacturing costs added to production for the year were $683,000; the cost of goods available for sale totaled $740,000; theunadjusted cost of goods sold totaled $660,000; and the net operating income was $30,000. The company's underapplied or overappliedoverhead 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 andschedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)

Solution:- First we need to calculate schedule of cost of goods manufactured as follows under:-

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.)

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.)

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 15.9EX: Classifying costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and...

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