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8. Property taxes payable on the factory were $25,800. The company paid cash for property taxes for their head office in the amount of $12,325.

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8. Property taxes payable on the factory were $25,800. The company paid cash for property taxes for their head office in the amount of $12,325. 9. Manufacturing overhead expenses incurred throughout the fiscal year were applied to jobs. 10. Jobs completed throughout the scal year incurred total production costs of $1 ,760,340 as tracked on the job cost sheets. 11. Revenue booked on account was $3,750,600. Cost of Goods Sold were $1 rEHIJCII,3I'50. 12. The company incurred interest expense on the long-term loan payable of $25,890, paid for in cash. Required: a) Prepare thejournal entries for the transactions that took place throughout the fiscal year. (24 mark) b) Prepare the T-account for the Manufacturing Overhead account. (6 marks) c) Is Manufacturing Overhead overapplied or underapplied? Book the journal entry to close overapplied or underapplied Manufacturing Overhead to Cost of Goods Sold. (4 maria?) d) Prepare the income statement as at December 31, 2021, assuming an income tax rate of 25%. (6 marks) Modern Medical allocates manufacturing overhead costs to each job on the basis of direct labour hours. The accounting team budgeted for $250,890 in manufacturing overhead costs and 33,000 direct labour hours for the 2021 scal year, which ends on December 31, 2021. It is now time to prepare the company's December 31, 2021 nancial statements. The CFO provides you with details on the following transactions that took place throughout the scal year. Transactions were booked on account unless otherwise specied. 1. Raw materials consist of plastic and other equipment assembly parts. A total of $684,500 were purchased on account. 2. Raw materials were issued into production in the amount of $665,000. Of this amount, $42,700 were indirect materials. 3. Accrued wages for factory staff amounted to $327,300. Of this amount, 35% was indirect labour. The remainder was direct labour. A total of 37Mdirect labour hours were worked during the year. 1- L g 4. Selling and administrative payroll expenses were accrued in the amount of $193,250. 5. Modern Medical incurred prepaid expenses of $36,300, which were paid in cash. Prepaids booked to the income statement during the year were $42,500. Of this amount, $7,750 was recorded as a general and administrative expense. The difference related directly to the factory. 6. Marketing and advertising expenses for the year were $105,600. 7. Depreciation expense for the year was $51,450. 82% related to factory buildings and equipment. The remainder related to their equipment and other capital assets at head office. Modern Medical Ltd. is a publicly-traded company based in Vancouver, BC. They have been in business since 1982 and manufacture x-ray and ultrasound machines that are sold to hospitals around the world. The company's CFO, Corinne Hua, has provided you with a copy of their January 1, 2021 trial balance: Cash 25,300 Accounts Receivable 38,950 Raw Materials Inventory 34,830 Work in Progress Inventory 52,570 Finished Good Inventory 75,220 Prepaid Expenses 10,690 Property and Equipment 760, 100 Accumulated Depreciation 375,870 Accounts Payable 54,730 Unearned Revenue 290,200 Long-Term Loan Payable 489,500 Common Shares 225,700 Retained Earnings 313,400

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