Assignment Job Order Costing Northwest Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. At the beginning of the current year, the following estimates were made for the purpose of computing the pre-determined overhead rate: Budgeted manufacturing overhead cost was expected to be $620,000 Budgeted direct material cost for the year was expected to be $387,500 The following transactions took place during the year: 1. Raw material purchases totaled S355,000. 2. Raw materials requisitioned for use in production (all direct 3. Utility costs incurred in the manufacturing plant were 4. Costs for salaries and wages were incurred as follows: materials) totaled S375,000 $52,500 Direct labour Indirect labour Selling and Administrative salaries S362,500 S540,000 $225,000 5. Maintenance costs incurred in the manufacturing plant were $37,500 6. Advertising costs for the year totaled S325,000 7. The company recorded depreciation of $125,000 for the year. 90% of the depreciation relates to manufacturing equipment. 8. The company paid $225,000 in rent for their facilities. The manufacturing plant used approximately 80% of the space in the facility 9. Manufacturing overhead was applied to jobs during the 10. The cost of goods manufactured for the year was 11. Sales for the year totaled $2,500,000. The unadjusted cost 12. Miscellaneous selling and administrative costs were 13. The balances in the inventory accounts at the beginning of ycar $1,475,000. of goods sold for these jobs was $1,500,000 $70,000 for the year the year were as follows: Raw materials $45,000 Work-in-process $60,000 Finished goods $87,500