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Based on the image you uploaded, the problem involves calculating the cost of goods manufactured (COGM), cost of goods sold (COGS), and preparing an income statement for Superior Company. Let's break down the steps needed to solve this:

### Given Data:

- **Selling expenses:** $214,000
- **Purchases of raw materials:** $269,000
- **Direct labor:** $372,000
- **Administrative expenses:** Not provided directly
- **Manufacturing overhead applied to work in process:** $151,000
- **Actual manufacturing overhead cost:** $359,000

#### Inventory Balances:
- **Beginning Raw Materials:** $57,000
- **Ending Raw Materials:** $36,000
- **Work in Process Beginning:** Not provided
- **Work in Process Ending:** $26,000
- **Beginning Finished Goods:** $38,000
- **Ending Finished Goods:** Not provided

### Additional Information:
- **Total manufacturing costs added to production:** $690,000
- **Unadjusted cost of goods sold:** $670,000
- **Cost of goods available for sale:** $745,000
- **Net operating income:** $34,000

### Steps Required:

1. **Schedule of Cost of Goods Manufactured (COGM):**
   - Calculate the raw materials used.
   - Add direct labor and manufacturing overhead.
   - Adjust for the beginning and ending Work in Process to get the total manufacturing cost.

2. **Schedule of Cost of Goods Sold (COGS):**
   - Start with the beginning finished goods inventory.
   - Add cost of goods manufactured.
   - Subtract the ending finished goods inventory to calculate the cost of goods sold.

3. **Income Statement:**
   - Calculate the gross profit by subtracting COGS from sales.
   - Deduct operating expenses (selling and administrative) to find the net operating income.

Would you like to start with a specific calculation or go through each schedule one by one?

Prepare schedules of cost of goods manufactured, cost of goods sold, and an income statement for Superior Company based on the provided data.

Learn how to calculate the cost of goods manufactured (COGM), cost of goods sold (COGS), and prepare an income statement for Superior Company. The problem covers cost accounting concepts such as direct materials, direct labor, and manufacturing overhead. Perfect for college-level accounting students.

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