Seem to be stuck on this problem as I cannot find the correct direct labor total
ID: 2334342 • Letter: S
Question
Seem to be stuck on this problem as I cannot find the correct direct labor total.
2018-19UnuInbox (1,69 Chapter 3 Pr X C Chegg Study | Guided Solutic X New Tab Chapter 3 Problems O ezto.mhedu 70% ezto.mhedu B 70% *.* Raw mateials used in production 320,000 2.00 points overnead appled bo work in proces inventory 225,000 605.000 Problem 3-23 Schedules of Cost of Goods Manufactured and Cost of Goods Sold, Income Statement LO3-6 Totsl manufacturing costs Add: Work in proceaa in Work in procesa inwemory ending Cost of goods manufsctured Superior Company provided the following scount balanoes for the year ended December 31 al aw macerals ra used in produotiondirect marar ala $140,000 b. Prepare a schedule of cost of goods sold Purchases of raw materals Direct labor 3250.000 5100,000 Manufacturing ovemaad applied to work in pross285,000 dministrative cxpeecs Total actual manufacturing ovemead costs $270,000 Inventory balances at the beginning and end of the year were as follows End ot Year Raw maaras Work in process Finished goods 540,000 10,000 7 35,000 50.000 Adjusted cost of goods sold The total manufatuing costs for the year were 3883.020; the cost of goods avalable for sale totsled T40,000; he unadjuted ooat of gooda old tocaled 5000,000; and the nat opera:ing inoome waa 530,000 The company's oweappied or underappled ovarhaad is cloend antiraly to Cost of Gooda Sold c. Prepare an income statement for the year Hnt: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of coat of gooda manutaotuned.) Required: Prepare a schedule of cost of goods manufactured eling and administrative coxp Raw materials inventory, beginning Add: Puchase of tw mateials Raw materials avaiable Lea: Ram materiala invantory, onding Raw matenials used in production 3 40.000 250.000 330.000 3 320.000 O Type here to search 7:35 PM 9/16/2018Explanation / Answer
Schedule of Cost of Goods Manufactured Direct materials: Raw materials inventory, beginning 40000 Add: Purchases of raw materials 290000 Total raw materials available 330000 Deduct: Raw materials inventory, ending 10000 Raw materials used in production 320000 Direct labor 78000 Manufacturing overhead applied to work in process inventory 285000 Total manufacturing costs 683000 Add: Beginning work in process inventory 42000 725000 Deduct: Ending work in process inventory 35000 Cost of goods manufactured 690000 Schedule of Cost of Goods Sold Finished goods inventory, beginning 50000 Add: Cost of goods manufactured 690000 Cost of goods available for sale 740000 Deduct: Finished goods inventory, ending 80000 Unadjusted cost of goods sold 660000 Less: Overapplied overhead 15000 Adjusted cost of goods sold 645000 Income Statement Sales 915000 Cost of goods sold 645000 Gross margin . 270000 Selling and administrative expenses: Selling expenses 140000 Administrative expense 100000 240000 Net operating income 30000