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S 1,500,000 38 Manufacturing overhead applied 39 Total current manufacturing costs 40 Plus: Beginning work in process inventory 41 Less: Ending work in process inventory 42 Cost of goods manufactured 43 44 3. Prepare an income statement 45 Stanford Enterprises 46 Income Statement 47 Sales revenue 48 Less: Cost of Goods Sold 49 Finished goods inventory, beginning SO 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 Sheet1 ** READY LI Tons Ch2 Saved Clipboard Font Styles F38 G H A B D E 1 Stanford Enterprises uses job-order 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 6 Estimated total direct labor hours 25,000 7 Actual total direct labor hours 27,760 8 9 Actual costs for the year: 10 Purchase of raw (direct) materials $ 375,000 11 Direct labor cost $ 536,300 12 Manufacturing overhead $ 302.750 13 14 Inventories: Beginning Ending 15 Raw Materials (All Direct) $ 15,000 $ 11,375 16 Work in Process 27.875 22,350 17 Finished Goods 34,600 26,450 18 19 Use the data to answer the following. 20 21 1. Overhead: 22 Actual overhead cost 23 Predetermined overhead rate $ 11 24 Actual direct labor hours 27,760 Sheet1 S 302.750 B D E G 16 Work in Process 17. Finished Goods 18 27,875 34,600 22,350 26,450 302,750 305,360 (2,610) 19 Use the data to answer the following. 20 21 1. Overhead: 22 Actual overhead cost $ 23 Predetermined overhead rate $ 11 24 Actual direct labor hours 27,760 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 31 Cost of Goods Manufactured Report 32 Direct materials: 33 Beginning raw materials inventory $ 15,000 34 Plus: Raw materials purchased 375,000 35 Less: Ending raw materials inventory (11,375) 36 Raw materials used in production $ 37 Direct labor 38 Manufacturing overhead applied 39 Total current manufacturing costs 378,625 536,300