Cik Kiah Enterprise is a small company that manufactures special heavy equipment for use in North Sea oil fields. The company uses a job-order costing system and applies manufacturing Overhead Cost to jobs on the basis of direct labour hours. At the beginning of the year, the following estimates were made for the purpose of computing the predetermined overhead rate (POHR): manufacturing overhead cost $360,000 and direct labor hours 900. The following transactions took place during the year (all purchases and services were acquired on account: a. Raw materials were purchased for use in production $200,000. b. Raw materials were requisitioned for use in production (all direct materials) $185,000. c. Utility bills were incurred amounting to $70,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Salary and wage cost incurred: Direct labour (975 hours) $230,000 Indirect labour $90,000 Selling & administrative salaries $110.000 e. Maintenance costs were incurred in the factory, $54,000. f. Advertising costs were incurred, $136,000. g. Depreciation was recorded for the year, $95.000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on buildings, $120,000 (85% related to factory operations, and the remainder related to selling and administrative facilities). i. Manufacturing overhead cost was applied to jobs using the company POHR. j. Cost of goods manufactured for the year, $770,000. k. Sales for the year (all on account) totaled $1,200,000. These goods cost $800,000 according to their job cost sheets. 1. The balances in the inventory accounts at the beginning of the year were: Raw materials $30,000 Work in Process $21,000 Finished Goods $60,000 Required: 1. Post journal entries to record the transactions took place. (12 marks) 2. Post your entries to T-accounts. Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account. (8 marks) 3. Prepare a schedule of cost of goods manufactured. (8 marks) 4. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. (2 marks)