EXERCISE For the current year, the company's POHR was based on estimates of $450,000 of total manufacturing overhead and estimated activity level of 75,000MH. Beginning balances for : RM=$20,000 | WIP =$15,000FG=$30,000 The following transactions were recorded for the year: 1. Raw materials were purchased on account, $410,000. 2. Raw materials were used in production, $380,000($360,000 direct materials and $20,000 indirect materials). 3. The following costs were accrued for employee services: direct labor, $75,000; indirect labor, $110,000; sales commissions, $90,000; and administrative salaries, $200,000. 4. Sales travel costs (on account) were $17,000. 5. Utility costs (on account) in the factory were $43,000. 6. Advertising costs (on account) were $180,000. 7. Depreciation was recorded for the year, $350,000 (80\% relates to factory assets, and 20% relates to selling and administrative assets). 8. Insurance expired during the year, $10,000 (70\% relates to factory operations, and the remaining 30% relates to selling and administrative activities). 9. Manufacturing overhead was applied to production. Due to greater than expected demand for its products, the company worked 80,000 machine-hours on all jobs during the year. 10. Jobs costing $900,000 to manufacture according to their job cost sheets were completed during the year. 11. Jobs were sold on account to customers during the year for a total of $1,500,000. The jobs cost $870,000 to manufacture according to their job cost sheets. Required: Prepare T-accounts (including the closing of MO account to COGS) and an Income Statement