Job Costing I Monticello Company uses a perpetual inventory system and has a highly labour intensive production process, so it assigns manufacturing overhead based on direct labour cost. Monticellos predetermined overhead application rate for 2017 was computed from the following data: Total estimated factory overhead $1,232,500 Total estimated direct labour cost $850,000 The following activities took place in the work in process inventory during June: WIP Inventory A/C June 1 Bal. 25,625 Direct Materials Used 127,400 Other transactions incurred: Indirect material issued to production was $19,000 Total manufacturing labour incurred in June was $172,500, 80% of this amount represented direct labour. Other manufacturing overhead costs incurred for June amounted to $170,375. Two jobs were completed with total costs of $160,000 & $105,000 respectively. They were sold on account at a mark-up of 75% on cost. Required: i) Compute Monticellos predetermined manufacturing overhead rate for 2017. ii) State the journal entries necessary to record the above transactions in the general journal: a) For direct materials used in June b) For indirect material issued to production in June c) For total manufacturing labour incurred in June d) To assign manufacturing labour to the appropriate accounts e) For other manufacturing overhead incurred f) For manufacturing overhead applied for June g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account iii) Calculate the manufacturing overhead variance for Monticello and state the journal entries necessary to dispose of the variance. iv) What is balance on the Cost of Goods Sold account after the adjustment v) Determine the balance in work in process inventory on June 30.