CAN SOMEONE ANSWER THIS QUESTION WITH DETAILS ? I CAN FIND THE ANSWER IN CHEGG FOR THIS BUT I NEED TO KNOW HOW TO REACH THE ANSWER. I WILL HAVE AN ORAL EXAM.

PROBLEM 3-27 Comprehensive Problem (LOI, LO2, L04, L05, L06, L07] Sovereign Millwork, Ltd., produces reproductions of antique residential moldings at a la located in Manchester, England. Because there are hundreds of products, some of which are made Job-Order Costing only to order, the company uses a job-order costing system. On July 1. the start of the company's fiscal year, inventory account balances were as follows: . Raw Materials ....... Work in Process .. Finished Goods 10,000 04.000 8,000 The company applies overhead cost to jobs on the basis of machine-hours. Its predetermined overhead rate for the fiscal year starting July I was based on a cost formula that estimated 199.000 of manufacturing overhead for an estimated activity level of 45,000 machine-hours. During the year, the following transactions were completed: a. Raw materials purchased on account, 160,000 b. Raw materials requisitioned for use in production, 140,000 (materials costing 120,000 were chargeable directly to jobs; the remaining materials were indirect). c. Costs for employee services were incurred as follows: Direct labor.... Indirect labor Sales commissions.... Administrative salaries.. 90,000 60,000 20,000 50,000 d. Prepaid insurance expired during the year, 18.000 (13.000 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Utility costs incurred in the factory, 10,000. f. Advertising costs incurred, 15,000. g. Depreciation recorded on equipment, 25,000. (20,000 of this amount was on equipment used in factory operations, the remaining 5,000 was on equipment used in selling and admin- istrative activities.) h. Manufacturing overhead cost was applied to jobs, 2. The company recorded 50.000 machine-hours of operating time during the year.) i. Goods that had cost 310,000 to manufacture according to their job cost sheets were completed j. Sales (all on account) to customers during the year totaled 498,000. These goods had cost 308,000 to manufacture according to their job cost sheets. Required: 1. Prepare journal entries to record the transactions for the year. 2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don't forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account 3. Is Manufacturing Overhead underapplied or overapplied for the year? Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. 4. Prepare an income statement for the year. (Do not prepare a schedule of cost of goods manu- factured; all of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.) PROBLEM 3-27 Comprehensive Problem (LOI, LO2, L04, L05, L06, L07] Sovereign Millwork, Ltd., produces reproductions of antique residential moldings at a la located in Manchester, England. Because there are hundreds of products, some of which are made Job-Order Costing only to order, the company uses a job-order costing system. On July 1. the start of the company's fiscal year, inventory account balances were as follows: . Raw Materials ....... Work in Process .. Finished Goods 10,000 04.000 8,000 The company applies overhead cost to jobs on the basis of machine-hours. Its predetermined overhead rate for the fiscal year starting July I was based on a cost formula that estimated 199.000 of manufacturing overhead for an estimated activity level of 45,000 machine-hours. During the year, the following transactions were completed: a. Raw materials purchased on account, 160,000 b. Raw materials requisitioned for use in production, 140,000 (materials costing 120,000 were chargeable directly to jobs; the remaining materials were indirect). c. Costs for employee services were incurred as follows: Direct labor.... Indirect labor Sales commissions.... Administrative salaries.. 90,000 60,000 20,000 50,000 d. Prepaid insurance expired during the year, 18.000 (13.000 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Utility costs incurred in the factory, 10,000. f. Advertising costs incurred, 15,000. g. Depreciation recorded on equipment, 25,000. (20,000 of this amount was on equipment used in factory operations, the remaining 5,000 was on equipment used in selling and admin- istrative activities.) h. Manufacturing overhead cost was applied to jobs, 2. The company recorded 50.000 machine-hours of operating time during the year.) i. Goods that had cost 310,000 to manufacture according to their job cost sheets were completed j. Sales (all on account) to customers during the year totaled 498,000. These goods had cost 308,000 to manufacture according to their job cost sheets. Required: 1. Prepare journal entries to record the transactions for the year. 2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don't forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account 3. Is Manufacturing Overhead underapplied or overapplied for the year? Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. 4. Prepare an income statement for the year. (Do not prepare a schedule of cost of goods manu- factured; all of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.)