need help 457409

PROBLEM 2’21 Schedule of Cost of Goods Manufactured; Income Statement; Cost Behavior [ LO2 ,

LO3 , LO4 , LO5 , LO6 ]

Selected account balances for the year ended December 31 are provided below for Superior Company:

Selling and administrative salaries . . . . . . . . . . . . $110,000

Purchases of raw materials . . . . . . . . . . . . . . . . . . $290,000

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ?

Advertising expense . . . . . . . . . . . . . . . . . . . . . . . $80,000

Manufacturing overhead . . . . . . . . . . . . . . . . . . . . $270,000

Sales commissions . . . . . . . . . . . . . . . . . . . . . . . . $50,000

Inventory ba lances a t t he be ginning a nd end of t he ye ar w ere a s f ollows:

Beginning of End of

the Year the 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 goods available for sale totaled

$740,000; and the cost of goods sold totaled $660,000.

Required:

1. Prepare a schedule of cost of goods manufactured and the cost of goods sold section of the company’s income statement for the year.