Cape Company is a manufacturing firm that uses process costing. At the beginning of the year, the company's inventory balances were as follows: Raw materials Tk 36,000 Work in process Tk 41,000 Finished goods Tk 104,000 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours for both cutting department and finishing department. At the beginning of the year, the company estimated that it would work 21,000 machine-hours and incur Tk 210,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased, Tk 346,000. b. Raw materials were requisitioned for use in production, Tk 338,000 (Tk 302,000 direct and Tk 36,000 indirect). 50% of the direct material is for cutting department and rest for the finishing department. c. The following employee costs were incurred: direct labor, Tk 360,000; indirect labor, Tk 68,000; and administrative salaries, Tk 111,000. 70% of the direct labor is for cutting department and rest for the finishing department. d. Factory utility costs, Tk 29,000. e. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 10,000 machine- hours for cutting department and 9000 machine-hours for the finishing department. f. All of the completed work were transferred from cutting department to finishing department. Required: [Marks: 18] Prepare journal entries to record the preceding transactions.