CAILABLE Updates for Office are ready to be installed, but first we need to close some apps Update now Question #1 (15 Marks) The Baggins Company uses a job-order costing system and applies manufacturing overhead cost to jobs gathe.basis.of the cost of materials used in production. At the beginning of the most recent year, the following estimates were made as a basis for computing the predetermined overhead rate for the year Manufacturing overhead cost: $200,000 Direct materials cost: $160,000 The following transactions took place during the year (all purchases and services were account): acquired on a) Raw materials purchased: $86,000. b.) Raw materials requisitioned for use in production (all direct materials): $98,000. c.) Utility costs incurn the factory: $15,000. d.) Salaries and wages incurred as follows: Direct labour Cndirect labour: Selling and administrative salaries: $125,000 $175,000 $70,0000 e.) Maintenance costs incurred in the factory: $15,000 f) Advertising costs incurred: $89,000. g) Depreciation recorded for the year: $80,000, of which 80% relates to factory assets and the remainder relates to selling and administrative assets h.) Rental cost incurred on buildings: $70,000 (75 % of the space is occupied by the factory, and 25 % is occupied by sales and administration). i) Miscellaneous selling and administrative costs incurred: $11,000 j) Manufacturing overhead cost was applied to jobs as per company policy k.) Cost of goods manufactured for the year: $500,000 1) Sales for the year (all on account): S1,000,000. These goods $600,000 to manufacture. cost Required: Prepare journal entries to record the information above. Mark your entries by the letters a through 1. (15 marks)