2.docx 22 7415 Questions - Journal Entries of Job Order Coating JLSV Lad manufactures and install custom shelving for industrial was. The company uses a specialized manufacturing process to ensure the shelves are an exact match with the building specification. The company wes a job order conting system to apply manfacturing overhead on the basis of direct labour cost. The company estimates that during the next year, it will incur 570,000 in overhead costs and will pay $140,000 in direct labour. During the year, the following transactions occurred: A) Purchased $180,000 of direct materials on account. b) Purchased $5,000 of supplies on account. (The suppliest consisted of glue and cleaning supplies.) e.) Requisitioned $170,000 of direct materials and 54,500 of supplies for use in production d.) Incurred employee costs i. Direct labour $150,000 ii. Indirect labour 40,000 it. Administrative salaries 190,000 iv. Sales salaries 30,000 Sales Commissions 90,000 e) Advertised on local television: 55,000 1.) Rent: $12,000. 40% of the space related to sales offices, 6096 was a shop used in production of rooting materials 3.) Depreciation: 525.000, 70% relates to roofing equipment, 30 relates to office equipment h.) Insurance expired: $15,000, 90% relates to the factory, the remainder relates to insurance on the office equipment 1.) Manufacturing overhead costs were applied to production J) Goods costing $375.000 were completed k) The company had sales on account of 5800,000. According to cost data, the jobs cout $350,000 Required: 1.) For items a) to k) above, record the journal entries. Unless otherwise noted, assume all transactions were an account b.) Was overhead overapplied or underapplied for the period? If so, by how much c) Recurd any journal entry to close over to cost of goods sold d.) Based on the information above, prepare an income statement for the company assume 20 tax rate OB ENG