During the first month of 2018, the business recorded the following transactions. Wave Media Supplies manufactures parts for radios. For each job order, they maintain ledger sheets on which they record direct materials, direct labour and factory overhead applied. The factory overhead account contains postings for actual overhead costs. At the end of the month, the overhead variance is closed out to the cost of goods sold account. Factory overhead is applied on the basis of direct labour hours. Wave's pre-determined overhead application rate for 2018 was computed from the following data: Total estimated factory overheads Total estimated direct labour hours $480,000 40,000 viii) Applied factory overhead to the various jobs using the pre-determined factory overhead rate. ix) Finished Jobs 501-503 and transferred to the finished goods inventory account x) Shipped Job 501 and 502 and billed customers at a mark-up of 50% on cost. Required: 3 (a) Calculate Wave's predetermined manufacturing overhead rate for 2018. (2 marks) (b) Calculate the total manufacturing cost for each job. (4 marks) (c) Using the total figures, record the preceding events in the general journal. Purchased materials on account, $50,000 i) ii) Incurred manufacturing wages of $106,500 iii) Issued direct materials and used direct labour in manufacturing (8 marks) (d) Post the manufacturing overhead transactions to the Manufacturing Overhead T- account, clearly showing the balance before closing the account. State the journal entries necessary to dispose of this variance. Assume that the manufacturing overhead variance is immaterial. (3 marks) Direct Materials Direct Labour Direct Labour Hours Job 501 $10,000 $22,000 1,200 Job 502 8,000 19,000 1,000 (e) Job 503 9,000 20,500 1,100 Calculate Wave's gross profit earned on the jobs, after adjusting for the manufacturing overhead variance. (2 marks) Job 504 15,000 29,025 1,800 iv) Issued indirect materials to production, $8,000 (f) v) Charged indirect manufacturing wages to production, $15,975 zero. vi) Depreciation expense on factory equipment used on the different jobs, $30,000 vii) Other overhead costs incurred on jobs 101 to 104 amounted to $11,275 (g) Calculate the January 31, 2018, balances in the Work in Process Inventory and (4 marks) Finished Goods Inventory accounts, assuming that the beginning balances were Briefly explain two (2) differences between a job costing and a process costing (2 marks) system.