Alexsandar Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials): 2.5 points Selling expenses 224,000 $ 270,000 eBook Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Total actual manufacturing overhead costs Deferences $ 158,000 $ 343,000 $ 373.000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year End of Year $62.500 $30.700 $32,500 $ 37700 The total manufacturing costs for the vear were $692.000, the cost of goods available 1 of 3 III Next > O here to search D o e Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year End of Year $62,500 $30,700 $32,500 $ 37,700 The total manufacturing costs for the year were $692,000, the cost of goods available for sale totaled $732,000; the unadjusted cost of goods sold totaled $666,500, and the net operating income was $42,500. The company's overapplied or underapplied overhead is closed entirely to cost of goods sold. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.) Required: a. Prepare a schedule of cost of goods manufactured Alexsandar Company Schedule of Cost of Goods Manufactured For the Year Ended December 31 Dr Materials Raw materials inventory beginning s 62.5001 ook Alexsandar Company Schedule of Cost of Goods Manufactured For the Year Ended December 31 Direct Materials: Raw materials inventory, beginning $ 62,500 Add: Purchase of raw materials 270,000 Total raw materials available 332,500 Less: Raw materials inventory, ending 30,700 Raw materials used in production Direct labor Manufacturing overhead applied to work in process Total manufacturing cost Add: Beginning work in process Inventory Tint rences $ 301,800 47,200 343.000 692.000 Less Ending work in process inventory Cost of goods manufactured 692.000 32.500 $ 659,500 b. Prepare a schedule of cost of goods sold. 37,700 Alexsandar Company Schedule of Cost of Goods Sold For the Year Ended December 31 Finished goods inventory, beginning $ Add: Cost of goods manufactured Cost of goods available for sale Less: Finished goods inventory, ending Unadjusted cost of goods sold Add: Underapplied overhead Adjusted cost of goods sold $ 37.700 37.700 37,700 c. Prepare an income statement for the year. Alexsandar Company Income Statement For the Year Ended December 31 Selling and administrative expenses