Hogle Company is a manufacturing firm that uses job-order costing. On January 1 , the beginning of its fiscal year, the company's inventory balances were as follows: The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company estimated that it would work 76,000 machine-hours and incur $500,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $420,000 b. Raw materials were requisitioned for use in production: $390,000($360,000 direct materials and $30,000 indirect materials). c. The following costs were incurred for employee services: direct labour, $76,000; indirect labour, $120,000; sales commissions, $85,000; and administrative salaries, $210,000. d. Sales travel costs were incurred: $19,000. e. Utility costs were incurred in the factory: $45,000 f. Advertising costs were incurred: $200,000 g. Depreciation was recorded for the year: $420,000 ( 90% relates to factory operations, and 10% relates to selling and administrative activities). h. Insurance expired during the year: $15,000(80% relates to factory operations, and the remaining 20% relates to selling and administrative activities). i. Manufacturing overhead was applied to production. Due to greater than expected demand for its products, the company worked 90,000 machine-hours during the year. j. Goods costing $800,000 to manufacture according to their job cost sheets were completed during the year. k. Goods were sold on account to customers during the year at a total selling price of $1,600,000 The goods cost $900,000 to manufacture according to their job cost sheets. Required: 1. Prepare journal entries to record the preceding transactions. 2. Post the entries in (1) above to T-accounts (don't forget to enter the opening balances in the inventory accounts). 3. Is Manufacturing Overhead underapplied or overapplied for the year? 4. Prepare a Schedule of Cost of Goods Manufactured and Cost of Goods Sold for the year. Prepare the appropriate journal entry to dispose of under/overapplied overhead at yearend. If overhead is overapplied, allocate based on the entire cost of manufacturing in each of Work in Process, Finished Goods, and Cost of Goods Sold. 5. Prepare an Income Statement for the year