fill in the yellow shaded area

7 Stanford 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 5 Estimated total direct labor hours 25,000 Actual total direct labor hours 27,760 3 Actual costs for the year: Purchase of raw (direct) materials $ 375,000 2 Direct labor cost $ 536,300 2 Manufacturing overhead $ 302,750 5 - Inventories: Beginning Ending Raw Materials (All Direct) $ 15,000 $ 11,375 Work in Process 27,875 22,350 Finished Goods 34,600 26,450 Use the data to answer the following. 1. Overhead: Actual overhead cost Predetermined overhead rate Actual direct labor hours Sheet1 - A B C D E F G H Actual direct labor hours 5 Total overhead applied 6 7 (Over) or under applied overhead 8 9 2. Prepare a schedule of cost of goods manufactured: 0 Stanford Enterprises 1 Cost of Goods Manufactured Report 2 Direct materials: 3 Beginning raw materials inventory 4 Plus: Raw materials purchased 5 Less: Ending raw materials inventory 6 Raw materials used in production 7 Direct labor 8 Manufacturing overhead applied 9 Total current manufacturing costs Plus: Beginning work in process inventory 1 Less: Ending work in process inventory 2 Cost of goods manufactured 3 4 3. Prepare an income statement. 5 Stanford Enterprises Income Statement 7 Sales revenue 6 $ 1,500,000 H $ 1,500,000 A B C D E 40 Plus: Beginning work in process inventory Less: Ending work in process inventory 42 Cost of goods manufactured 43 44 3. Prepare an income statement. 15 Stanford Enterprises 46 Income Statement 47 Sales revenue 48 Less: Cost of Goods Sold 49 Finished goods inventory, beginning 50 Plus: Cost of goods manufactured 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 58 59 60 51 Sheet1 ... +