Beta Company provided the following information at year end:

Raw material purchases $80,000

Advertising expenses $50,000

Net income $15,000

Manufacturing overhead applied $100,000

Actual manufacturing overhead $125,000

Unadjusted Cost of Goods Sold $225,000

Total Manufacturing Costs $300,000

Beginning Ending

Raw materials $50,000 $20,000

Work in process $150,000 $250,000

Finished goods $100,000 $75,000

a. Prepare income statement for Beta Company

b. Prepare schedule of goods manufactured for Beta Company

c. Prepare schedule of adjusted cost of goods sold for Beta Company

d. Prepare the journal entry and T accounts needed to clear the Manufacturing

Overhead account of over/under applied manufacturing overhead. How

does this journal entry affect Net Income?