The above amounts for inventories and the cost of goods sold have not been adjusted for any over- or under-application of manufacturing overhead to production. It is the company's practice to allocate any over- or under-applied overhead to inventories and the cost of goods sold. Calculate the under- or over-applied manufacturing overhead for 2016. (Round answer to the nearest whole dollar, e.g. 5,275.) $ Manufacturing overhead 265,580 Under-applied Prorate the amount calculated in (a) based on the ending balances ( before prorating) of Work in e.g. 5,275.) Process, Finished Goods, and Cost of Goods Sold. (Round answers to the nearest whole dollar, Allocation Cost of goods sold 173,796 Finished goods inventory 31,790 WIP inventory 59,968 Total 265,554 Prepare an income statement for the company for the year. The income tax rate is 40%. (Round answers to the nearest whole dollar, e.g. 5,275.) NICOLE LIMITED Income Statement for the year 2016 Sales 6,208,300 Less 4,104,996 Adjusted cost of goods sold Gross profit/ (Loss) 2,103,304 Less 1,855,900 Operating expenses Net income before taxes 247,404 Taxes 98,962