Almeda Products, Inc. uses a job-order costing system. The company's inventory balances on April 1, the start of its fiscal year, were as follows: Raw materials. Work in process Finished goods $32,000 20.000 48.000 1. During the year, the following transactions were completed: 2. Raw materials were purchased on account, $170,000. 3. Raw materials were issued from the storeroom for use in production, $180,000 (80% direct and 20% Indirect). 4. Employee salaries and wages were accrued as follows: direct labour, $200,000; indirect labour, $82,000; selling and administrative salaries, $90,000. 5. Utility costs were incurred in the factory, $65,000 6. Advertising costs were incurred, $100,000 7. Prepaid insurance expired during the year, $20,000 (90% related to factory operations, and 10% related to selling and administrative activities). 8. Depreciation was recorded, $180,000 (85% related to factory assets, and 15% related to selling and administrative assets) 9. Manufacturing overhead was applied to jobs at the rate of 175% of direct labour cost. 10. Goods that cost $ 700,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. 11. Sales for the year totaled $1,000,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $720,000 Required: 1. Prepare journal entries to record the transactions for the year. 2. Prepare T-accounts for raw materials, work in process, finished goods, manufacturing overhead, and cost of goods sold. Post the appropriate parts of your journal entries to these T-accounts. Compute 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 to the cost of goods sold