3 The Aral Manufacturing Company operates a job-order costing system and applies overhead cost 4 on the basis of direct labour hours. In computing an overhead rate for the year, the company's 5 estimates were as follows: manufacturing overhead cost, $330,000, direct labour cost, $480,000 6 and direct labour hours, 24,000 hours. The following transactions occurred during their fiscal year 7 anded October 31 2001: 9 a) Raw materials were purchased on account: $452,500. 10 11 b) of the raw materials that were used during the year, $42,000 were Indirect raw materials 12 13 c) Selling and administrative salaries were $150,000, 14 15 d) Total factory payroll was $540,000, a portion of which was indirect. A total of 23,600 direct 16 labour hours were worked during the year. There was no change to the average direct labour wage 17 18 e) Marketing cost was incurred: $70,000. 19 20 ) Depreciation charges for the year totaled $180,000 (75% related to fabrication and shop assets 21 and 25% related to selling and administrative assets). 22 23 9) Utilities incurred during the year in the factory was $47,500; selling and administrative utilities 24 25 m) Opening inventories and the unadjusted closing inventories were: 26 Opening Closing 27 Raw Materials: 20,000 25,000 28 Work-In-Process: 25,500 ? Finished Goods: 45,000 30 ? + 31 ) The ending work-in-process inventory on October 31, 2021 had incurred $9,000 of direct raw 32 materials and 400 direct labour hours 34 ) Goods that cost $1,205,000 to manufacture according to their job cost sheets were transferred 36 K) Sales for the year totalled $2,000,000. The unadjusted cost of goods sold was $1.200.000 38 REQUIRED: 39 1. Calculate the manufacturing overhead application rate and the manufacturing overhead applied for the year. (2 mas 40 29 33 35 37 2. Calculate the specific costs (direct materials, direct labour AND applied manufacturing overhead) comprising the ending work in process inventory. (3 Marks) Direct materials Direct labour Applied manufacturing overhead Ending WIP Inventory Finished goods 3 3. Record the fiscal year 2021 transactions (including the opening and closing balances) in the following seven Taccounts: raw materials inventory, work-in-process inventory, finished goods 5 Inventory, cost of goods sold, and manufacturing overhead, operating expenses and sales Journal 6 entries are not required. If you prepare Jes, make sure to post them to T-Accounts and calculate 7 the endin balance (18 marked 58 59 Raw materials WIP 80 61 62 63 64 65 66 67 6B Manufacturing Overhead Operating expenses 89 70 71 72 73 74 75 76 77 Sales 78 79 80 81 Cost of goods sold B Sales 3 4 15 36 B7 B8 89 4. Prepare the journal entry to prorate any under or over applied manufacturing overhead if the 90 company follows International Accounting Standard 2 and post it to the respective T-Accounts. 91 Show all calculations (6 marks) 92 02