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. ? X Cost of Goods Manufactured and Cost of Goods Sold - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW - Sign In FILE HOME INSERT Calibri E- - 11-AA F- A B I U Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells - Editing Clipboard Font H1 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 9 Actual costs for the year: 10 Purchase of raw (direct) materials 11 Direct labor cost 12 Manufacturing overhead $ $ $ 375,000 536,300 302,750 14 Inventories: 15 Raw Materials (All Direct) 16 Work in Process Finished Goods Beginning $ 15,000 $ 27,875 34,600 Ending 11,375 22,350 26,450 19 Use the data to answer the following. 21 1. Overhead: 22 Actual overhead cost 23 Predetermined overhead rate 24 Actual direct labor hours Total overhead applied (Over) or under applied overhead 2. Prepare a schedule of cost of goods manufactured: Stanford Enterprises Cost of Goods Manufactured Report Direct materials: Beginning raw materials inventory Plus: Raw materials purchased Less: Ending raw materials inventory Raw materials used in production Direct labor Manufacturing overhead applied Total current manufacturing costs Plus: Beginning work in process inventory Less: Ending work in process inventory Cost of goods manufactured 3. Prepare an income statement. Stanford Enterprises Income Statement Sales revenue Less: Cost of Goods Sold $ 1,500,000 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