Chatham Manufacturing Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any under-applied or over-applied overhead is closed to Cost of goods sold at the end of the month. During August, the following transactions were recorded by the company: Direct materials: ; . Purchased during the month : 150,000 Used in production ,._ 170,000 Labor: _ Direct labor hours worked during the month 20,000 Direct labor costs incurred . 160,000 Indirect labor costs incurred -; 40,000 Total manufacturing overhead costs incurred ' 110,000 Inventories: Direct materials on Aug 31 50,000 Work in process on Aug 1 1 42,000 Work in process on Aug 31 I 80,000 Required: 1) Calculate the August 1 balance of direct materials. (5 Marks) 2) Calculate the amount of manufacturing overhead applied to jobs in August. (5 Marks) 3) Calculate cost of goods manufactured in August. (5 Marks) 4) Calculate the over-applied or under-applied manufacturing overhead for the month. Label this amount appropriately. (5 Marks) 5) Write down the journal entries to (a) apply manufacturing overhead, and (b) close the over-applied or under-applied manufacturing overhead to cost of goods sold