2 1234 7 56988 10 11 Oil and Gas Products Ltd. operates out of Medicine Hat and manufactures unique, custom made pumpjacks for the oil and gas industry. For the year ended November 2022 the company estimated (budgeted) $112,000 in manufacturing overhead cost, $224,000 in direct labour cost and 14,000 direct labour hours. The company applies manufacturing overhead costs on the basis of actual direct labour hours. For the past four years the budgeted direct labour hourly rate has equalled the actual direct labour hourly rate. The predetermined manufacturing overhead application rate has not changed since 2019. The company has a November 30 year end for accounting and tax purposes. The following information is available for the year ended November 30, 2022. Manufacturing overhead was overapplied by $10,000 Sales commissions are 4% of sales revenue. Raw materials purchased during the year totalled $643,520. All purchased on account. Of the raw materials that were used during the year, $35,000 were indirect raw materials. The opening raw materials inventory was $10,000. The corporate income tax rate is 11%. Administrative expenses incurred in the year were $148,000. The total actual factory payroll was $248,725 ($22,725 of that was for indirect labour). The company's insurance policy covers the calendar year January 1 to December 31. The opening prepaid insurance balance on December 1, 2021 was $1,600. The company paid additional insurance premiums of $13,200 during their current fiscal year. Seventy five percent of the insurance relates to the factory. Twenty five percent of the insurance relates to selling and administration. The November 30, 2022 balance of raw materials inventory was $18,000. Utilities incurred during the year in the factory was $17,000; selling and administrative utilities were: $2,500. 12 Total sales revenue for the year was $1,800,000. According to their job cost sheets those pumpjacks that were sold cost $1,100,000 to manufacture. 13 During the year, pumpjacks that cost $950,000 to manufacture according to their job cost sheets were completed and transferred to the finished goods warehouse. 14 The work-in-process inventory on November 30, 2022 had incurred $15,192 of direct raw materials and 72 actual direct labour hours. 15 The work in process inventory at November 30, 2021 had $24,952 of direct raw materials and 102 actual direct labour hours. 16 The adjusted balance of finished goods inventory on November 30, 2021 was $350,000. 17 Depreciation charges for the year totalled $20,000. This amount was allocated to the factory equipment and to the selling and administrative equipment REQUIRED: IV V VI Calculate the following: the predetermined manufacturing overhead application rate, the budgeted direct labour hourly rate, the actual direct labour hours worked during the year and the applied manufacturing overhead for the year. Calculate the specific costs (direct materials, direct labour AND applied manufacturing overhead) that make up the opening and the ending work in process inventories. Record the 2022 transactions (including any opening and closing balances) in "T" accounts provided. Prepare the journal entry to prorate any over or under applied manufacturing overhead if the company follows International Accounting Standard 2 Prepare a schedule of cost of goods manufactured for the year ended November 30, 2022 assuming the company has posted the journal entry in #4 above. Prepare an income statement for the year ended November 30, 2022 assuming the company has posted the journal entry in #4 above.