Hello, i would like a detailed explanation on the answers of this problem. the formulas along with the mathematical equations and numbers .

PROBLEM 3-13 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement LO3-3 @ Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 140,000 $290,000 Purchases of raw materials Direct labor ? Administrative expenses $100,000 Manufacturing overhead applied to work in process $285,000 Actual manufacturing overhead cost $270,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Beginning Ending $40,000 $10,000 ? $35,000 Work in process Finished goods $50,000 ? The total manufacturing costs for the year were $683,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $660,000; and the net operating income was $30,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Required: Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.) Schedule of cost of goods manufactured: $ 40,000 290,000 330,000 10,000 Direct materials: Beginning raw materials inventory* Add: Purchases of raw materials*. Total raw materials available........ Deduct: Ending raw materials inventory* Raw materials used in production. Direct labor ....... Manufacturing overhead applied to work in process* Total manufacturing costs* Add: Beginning work in process inventory $320,000 78,000 I.... 285,000 683,000 42,000 725,000 35,000 $690,000 Deduct: Ending work in process inventory* ... Cost of goods manufactured..... Schedule of cost of goods sold: Beginning finished goods inventory* Add: Cost of goods manufactured. Cost of goods available for sale* Deduct: Ending finished goods inventory. Unadjusted cost of goods sold* Deduct: Overapplied overhead ($270,000 $285,000).......... Adjusted cost of goods sold..... $ 50,000 690,000 740,000 80,000 660,000 15,000 $645,000 Income statement: $915,000 645,000 270,000 Sales........... Cost of goods sold ($660,000 - $15,000) ..... Gross margin... Selling and administrative expenses: Selling expenses* ....... Administrative expense* Net operating income* * Given in the problem $140,000 100,000 240,000 $ 30,000