ACC 601-Managerial Accounting Group Assignment 1 (80 points)
1. As a group, complete the following activity in good form. Use excel or word only. Provide all supporting calculations to show how you arrived at your numbers
Part A-2: Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement
- Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):
Selling expenses $216,000
Purchases of raw materials $264,000
Direct labor ?
Administrative expenses $159,000
Manufacturing overhead applied to work in process $368,000
Actual manufacturing overhead cost $355,000
- Inventory balances at the beginning and end of the year were as follows:
Beginning of YearEnd of Year
Raw materials $ 51,000 $ 33,000
Work in process ? $ 32,000
Finished goods $ 34,000 ?
The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $32,000. The company’s underapplied or overapplied overhead 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 and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)