Superior Company provided the following account balnces for the year ended December 31 (all raw materials are used in production as direct materials):
Inventory balances at the beginning and end of the year were as follows:
Even though this firm outperformed the industry norm, it was still unprofitable to invest in because the opportunity cost is greater than the industry norm. Asa result, this analysis fails to support what might have been concluded using ratio analysis.
Required:
a. Prepare a schedule of cost of goods manufactured.
b. Prepare a schedule of cost of goods sold.
c. Prepare an income statement for the year.
