1 Stanford Enterprises or job-order conting. Overhead is applied on the basis of direct labor hours The following information relates to the year just ended Estimated total overhead costs 275.00 Estimated total direct labor hours 25,000 Actual total direct labur hours 27.70 375O00 S36.200 302.750 Actual SONG for the ye Purchase of raw (direct materials Direct labor cont Manufacturing overhead Inventories Beginning Raw Materials CAM Direct 15.000 16 Work in Process 17 34.000 Finished Goods 18 1 Use the data to swer the followinx 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. Endin 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 Cost of Goods Manufactured Report Direct materials: 33 Beginning raw materials inventory 34 Plus: Raw materials purchased Less: Ending raw materials inventory 36 Raw materials used in production 37 Direct labor 38 Manufacturing overhead applied Total current manufacturing costs 40 Plus: Beginning work in process inventory 41 Less: Ending work in process inventory 42 Cost of goods manufactured 45 46 $ 1,500,000 44 3. Prepare an income statement. Stanford Enterprises * Income Statement 47 Sales revenue 48 Less: Cost of Goods Sold 49 + Finished goods inventory, beginning 50 w Plus: Cost of goods manufactured 51 51 Less: Ending finished goods inventory 52 Unadjusted cost of goods sold 53 Underapplied (overapplied) overhead 54 Adjusted cost of goods sold 55 Gross Profit 56 Less: Selling, general, and administrative expenses (10% of Sales) 57 Net Operating Income