HOMEWORK 2 (5 marks) Bravos Company, based in Norway, uses a job-order cost system and applies manufacturing overhead cost to jobs on the basis of direct labour hours. On 1st September 2020, the following estimates were made for the purpose of computing the predetermined overhead rate: Manufacturing Overhead Cost, Norwegian Krona (Nkr) 385,000; and direct labour hours, 700. The following transactions took place during the year, which ended on 31st August 2021: a) Raw materials purchased, Nkr 225,000. b) Raw materials requisitioned for use in production (all direct materials) Nkr 210,000. c) Utility bills incurred, Nkr 100,000 (80% relate to the factory, and 20% to selling and administrative activities). d) Costs for salaries and wages were incurred as follows: Direct labour (760 hours) Indirect labour Selling and administrative salaries Nkr 260,000 Nkr 87,000 Nkr 122,000 e) Maintenance costs incurred in the factory, Nkr 65,900. f) Advertising costs incurred, Nkr 105,250. g) Miscellaneous selling and administrative costs incurred, Nkr 52,600. h) Depreciation recorded for the year, Nkr 64,000 (75% relates to the factory assets, and 25% to selling and administrative assets). i) Rental costs incurred on buildings, Nkr 120,000 (80% relates to the factory and 20% to selling and administrative activities). J) The Manufacturing Overhead cost applied to jobs needs to be calculated k) Cost of goods manufactured during the year, Nkr 890,500. 1) The cost of goods sold was Nkr $915,000. m) Sales for the year totaled Nkr 1,750,000. The opening balances in the inventory accounts at 1st September 2020 were as follows: Raw materials Work in process Finished goods Nkr 28,000 Nkr 32,000 Nkr 45,000 REQUIRED: 1) Post the entries to the 5-T-accounts, on the attached work sheet, and calculate the ending balances. 2) Prepare a Schedule of the Costs of Goods Manufactured for the year ended 31st August 2021. 3) Show the journal entry to clear the balance in the Manufacturing Overhead account. Then prepare a Schedule of Cost of Goods Sold for the year ended 31st August 2021. 4) Prepare an Income Statement for the year ended 31st August 2021. 5) Job 85 was one of the many jobs started and completed during the year. The time taken by direct labour to do the whole job was 50 hours. This job required Nkr 8,600 in direct materials and a total of Nkr 30,500 in direct labour costs. If the job contained 200 units and the company billed the job at 150% of the unit product cost on the job cost sheet, what price per unit would have been charged to the customer