During the year,the following transactions were completed; raw materials were purchased on account $170,000 Raw materials were issued from the store room for used in production $180,000. Employee salaries and wages were accrued as fallows direct labor, $200,000 indirect labor, $82,000 and selling and administrative salaries, $90,000. Utility costs were incurred in the factory, 65,000. Advertising cost were incurred $100,000. Prepaid insurance expired during the year $20,000. Depreciation was recorded, $180,000(85% related to factory assets and 15% related to selling and administrative assets). Manufacturing overhead was applied to jobs at the rate of 175% of direct labor cost. Goods the cost $700,000 to manufacture according to their job cost sheets were transferred to the finished goods warhorse. Sales for the year total$1,000,0000 and were all on account. the total cost to manufacture these goods according to their job cost sheets was $ 720,000. Prepare journal entries to record the transactions for the year. Prepare T-accounts for Raw Materials, Work in process. Finished Goods, Manufacturing Overhead, and Cost of Goods Sold. Post the appropriate parts of your journal entries to these T- accounts. Computing the ending balance in each account(Don't forget to enter the beginning balances in the inventory accounts.) Is Manufacturing Overhead under applied or over applied for the year? Prepare a journal entry to close this balance to Cost of Goods Sold. Prepare an income statement for the year.(Do not prepare a schedule of cost of goods manufactured; all of the information needed for the income statement is available in the journal entries and T- accounts you have prepared.)