1. Calculate and dispose of overapplied or underapplied manufacturing overhead. 2. Calculate the cost of goods manufactured and cost of goods sold. 3. Prepare an income statement for a manufacturing firm. FILE HOME INSERT Sign In Calibri - 11 Cost of Goods Manufactured and cost of Goods Sold - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW - A % Alignment Number Conditional Format as Cell Formatting Table Styles Styles Paste BIU Cells Clipboard Font F23 C D E G H . B 1 Stanford Enterprises uses job-order costing. 2 Overhead is applied on the basis of direct labor hours. 3 The following information relates to the year just ended. 4 Data: 5 Estimated total overhead costs $ 275,000 6 Estimated total direct labor hours 25,000 7 Actual total direct labor hours 27,760 8 $ $ 375,000 536,300 302,750 9 Actual costs for the year: 10 Purchase of raw (direct) materials $ 11 Direct labor cost 12 Manufacturing overhead 13 14 Inventories: Beginning 15 Raw Materials (All Direct) $ 15,000 $ 16 Work in Process 27,875 17 Finished Goods 34,600 Ending 11,375 22,350 26,450 18 5. - X Cost of Goods Manufactured and Cost of Goods Sold - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW FILE HOME INSERT Sign In - 11 HI Calibri BIU Paste Cells A % A - Alignment Number Conditional Format as Cell Formatting Table Styles Styles fx Clipboard Font F23 D E F G H 19 Use the data to answer the following. 20 21 1. Overhead: 22 Actual overhead cost 23 Predetermined overhead rate 24 Actual direct labor hours 25 Total overhead applied 26 27 (Over) or under applied overhead 28 29 2. Prepare a schedule of cost of goods manufactured: 30 Stanford Enterprises 31 Cost of Goods Manufactured Report 32 Direct materials: 33 Beginning raw materials inventory 34 Plus: Raw materials purchased 35 Less: Ending raw materials inventory 36 Raw materials used in production 37 Direct labor 38 Manufacturing overhead applied 39 Total current manufacturing costs 40 Plus: Beginning work in process inventory 41 Less: Ending work in process inventory 42 Cost of goods manufactured $ 1,500,000 3. Prepare an income statement. Stanford Enterprises Income Statement Sales revenue Less: Cost of Goods Sold Finished goods inventory, beginning Plus: Cost of goods manufactured Less: Ending finished goods inventory Unadjusted cost of goods sold Underapplied (overapplied) overhead Adjusted cost of goods sold Gross Profit Less: Selling, general, and administrative expenses (10% of Sales) Net Operating Income