Almeda Production, Inc. uses a job order costing system. The company inventory balances on April 1, start of its fiscal year, were as follows:

Raw Material $52,000

Work in process $40,000

Finished Goods $38,000

During the year, the following transactions were completed:

1. Raw materials were purchased on account, $170,000.
2. Raw material were issued from the storeroom for use in production, $200,000 (80% direct and 20% indirect).
3. Employee salaries and wages were accrued as follows: direct labor $200,000; indirect labor $82,000; selling and administrative salaries $120,000.
4. Utility cost were incurred in factory, $75,000.
5. Advertising cost were incurred, $90,000.
6. Prepaid insurance expired during the year, $20,000 (70% retired to factory operations, and 30% related to selling and administrative activities).
7. Depreciation was recorded, $150,000 (80% related factory assets and 20% related to selling and administrative assets).
8. Manufacturing overhead was applied to jobs at the rate of 160% of direct cost.
9. Goods that cost $700,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
10. Sales for the year totaled $1,000,000 and were all on account. The total cost to manufacture these goods according to their cost sheet was $720,000.

Required:

1. journal entries to record the transaction for the year.
2. T-accounts for raw material, work in process, finished goods, manufacturing overhead, and cost of goods sold. Post the appropriate parts of your journal entries to these T-accounts. Compare the ending balance in each account. (Do not forget to enter the beginning balances in the inventory accounts).
3. Is manufacturing overhead underapplied or overapplied for the year? Prepare a journal entry to close this balance of cost of goods sold.
4. an income statement for the year ended. (Do not prepare a schedule of cost of goods manufactured).