Entries; T-Accounts; Cost Flows [LO4 - CC8; LO6 - CC12; LO7 - CC14; LO8 - CC18] Aponi Products, Inc. uses a job-order costing system. The company's inventory balances on August 1, the start of its fiscal year, were as follows: Raw materials $48,000 Work in process 35,000 Finished goods 30,000 During the year, the following transactions were completed: a. Raw materials were purchased on account, $180,000. b. Raw materials were issued from the storeroom for use in production, $200,000 (80% direct and 20% indirect). c. Employee salaries and wages were accrued as follows: direct labour, $200,000; indirect labour, $85.000: selling and administrative salaries, $ 130,000. d. Utility costs were incurred in the factory, $80,000. e. Advertising costs were incurred, $75,000. f. Prepaid insurance expired during the year, $24,000 (75% related to factory operations, and 25% related to selling and administrative activities).Depreciation was recorded, $150,000 (80% related to factory assets, and 20% related to selling and administrative assets). h. Manufacturing overhead was applied to jobs at the rate of 150% of direct labour cost. Goods that cost $700,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. j. Sales for the year totalled $1,000,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $710,000. Required: 1. Prepare journal entries to record the transactions for the year. 2. 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. Compute the ending balance in each account. Do not forget to enter the beginning balances in the inventory accounts.) 3. Is manufacturing overhead underapplied or overapplied for the year? Prepare a journal entry to close this balance to cost of goods sold. 4. Prepare an income statement for the year. Do not prepare a schedule of cost of goods manuiactured; all of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.)