Answer one of the following questions (10 marks): 10 points 1. The selected data that follow relate to the XYZ Company Raw material purchased Direct material used Direct labor $160,000 79,000 170,000 90,000 Manufacturing overhead applied Required: During the year, products costing $310,000 were completed. Prepare journal entries to record the preceding transactions and events. The company uses a perpetual inventory system 2. ABC company currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $1.00 Direct labor 10.00 Variable overhead 5.00 8.00 Fixed overhead Total $24.00 Bill Company has contacted ABC company with an offer to sell them 5,000 of the subassemblies for $22.00 each ABC company will eliminate $25,000 of fixed overhead if it accepts the proposal Requirement: (a) What are the total relevant costs for ABC company? (b) Should ABC company make or buy the subassemblies? Explain your