Materials:Beginning inventory $30000Purchases $400000Ending Inventory $50000Work

Materials:Beginning inventory $30000Purchases $400000Ending Inventory $50000Work-In-Process:Beginning Inventory $20000Direct labor $360000Ending Inventory $300000Finished Goods:Beginning Inventory $10000Ending Inventory $50000MOH actual: $540000Additional Information:a) Direct Labor wage rate was $15 per hourb) MOH was allocated at $20 per direct labor hourc) Sales revenue was $1090000d) Marketing and Distribution costs were $140000Required:1- Calculate the over or under applied manufacturing overhead.2- Determine the cost of goods manufactured.3- Determine the cost of goods sold4- Prepare income statement usingthe direct write-off method and the Proration method