Superior Company has the following cost and expense data for the year ending December 31, 2014.
|
Raw materials, 1/1/14 |
$ 30,000 |
|
Raw materials, 12/31/14 |
20,000 |
|
Raw materials purchases |
205,000 |
|
Indirect materials |
15,000 |
|
Work in process, 1/1/14 |
80,000 |
|
Work in process, 12/31/14 |
50,000 |
|
Finished goods, 1/1/14 |
110,000 |
|
Finished goods, 12/31/14 |
120,000 |
|
Direct labor |
350,000 |
|
Factory manager’;s salary |
35,000 |
|
Insurance, factory |
$ 14,000 |
|
Property taxes, factory building |
6,000 |
|
Sales revenue |
1,500,000 |
|
Delivery expenses |
100,000 |
|
Sales commissions |
150,000 |
|
Indirect labor |
90,000 |
|
Factory machinery rent |
40,000 |
|
Factory utilities |
65,000 |
|
Depreciation, factory building |
24,000 |
|
Administrative expenses |
300,000 |
Instructions
(a)Prepare a cost of goods manufactured schedule for Superior Company for 2014.
(b)Prepare an income statement for Superior Company for 2014.
(c)Assume that Superior Company”s accounting records show the balances of the following current asset accounts: Cash $17,000, Accounts Receivable (net) $120,000, Prepaid Expenses $13,000, and Debt Investments (short-term) $26,000. Prepare the current assets section of the balance sheet for Superior Company as of December 31, 2014.