Laurentian Inc., produces and sells canoes for $6,400 each. Laurentian Inc., uses a hybrid cost system and applies overhead to production on the basis of direct labour costs. First Quarter 2017, sales were $768,000 and Second Quarter 2017, sales $928,000. The following accounts are found in Laurentian's cost accounting system for these Quarters of 2017. Assume that changes in activity are the only factors that affect costs and the sales in the first and third Quarters of 2017 present the normal range of activities for 2017. Laurentian Inc., estimates total manufacturing overhead costs of $3000,000, direct labour costs of $1,500,000, and direct labour hours of 10,000 for the 2017 year. The income tax rate was 40%. First Quarter 2017 has the following ledger Accounts: + Raw Materials Inventory $6,000 ??? Requisitions Beginning balance ????????? $130,000 Ending balance $8,000 Jobs completed $?????? Beginning balance Direct materials Direct labour Manufact. Overhead Work in Process Inventory $15,000 ??? 200,000??? ??? Ending balance $25,000 Finished Goods Inventory $15,000 ????????? Beginning balance Jobs completed $710,000 Ending balance $25,000 Selling expenses General expenses Admin. expenses SG&A Expense $15,000 $10,000 $25,000 O During the first quarter, the Laurentian Inc. incurred manufacturing overhead costs as follows: indirect materials $10,000, indirect labour $30,000, Utilities 70,000, Machinery expenses 250,000, and various other manufacturing overhead costs on account 20,000. Third Quarter 2017 has the following ledger Accounts: Beginning balance ????????? Raw Materials Inventory $8,000 Requisitions ??? $145,000 Ending balance $4,000 Work in Process Inventory $5,000 Jobs completed $???? ??? Beginning balance Direct materials Direct labour Manufact. Overhead 250,000??? ??? Ending balance $30,000 Finished Goods Inventory $10,000 ????????? $870,000 Beginning balance Completed jobs ??? Ending balance $80,000 Selling expenses General expenses Admin. expenses SG&A Expense $20.000 $25,000 $25,000 During the Second quarter, the Laurentian Inc. incurred manufacturing overhead costs as follows: indirect materials $9,000, indirect labour $55,000, Utilities 120,000, Machinery expenses 290,000, and various other manufacturing overhead costs on account 35,100. Required: a) Prepare a cost of goods manufactured schedule for the first Quarter of 2017. b) Calculate the under or over-applied manufacturing overhead for the second quarter of 2017. c) Prepare the adjusting entry for the manufacturing overhead; assuming Laurentian Inc. uses proration method for the second quarter of 2017. d) Prepare an income statement for the company for the Second Quarter of 2017. e) Provide the balance sheet presentation of the manufacturing inventories at the end of the second quarter. Laurentian Inc., produces and sells canoes for $6,400 each. Laurentian Inc., uses a hybrid cost system and applies overhead to production on the basis of direct labour costs. First Quarter 2017, sales were $768,000 and Second Quarter 2017, sales $928,000. The following accounts are found in Laurentian's cost accounting system for these Quarters of 2017. Assume that changes in activity are the only factors that affect costs and the sales in the first and third Quarters of 2017 present the normal range of activities for 2017. Laurentian Inc., estimates total manufacturing overhead costs of $3000,000, direct labour costs of $1,500,000, and direct labour hours of 10,000 for the 2017 year. The income tax rate was 40%. First Quarter 2017 has the following ledger Accounts: + Raw Materials Inventory $6,000 ??? Requisitions Beginning balance ????????? $130,000 Ending balance $8,000 Jobs completed $?????? Beginning balance Direct materials Direct labour Manufact. Overhead Work in Process Inventory $15,000 ??? 200,000??? ??? Ending balance $25,000 Finished Goods Inventory $15,000 ????????? Beginning balance Jobs completed $710,000 Ending balance $25,000 Selling expenses General expenses Admin. expenses SG&A Expense $15,000 $10,000 $25,000 O During the first quarter, the Laurentian Inc. incurred manufacturing overhead costs as follows: indirect materials $10,000, indirect labour $30,000, Utilities 70,000, Machinery expenses 250,000, and various other manufacturing overhead costs on account 20,000. Third Quarter 2017 has the following ledger Accounts: Beginning balance ????????? Raw Materials Inventory $8,000 Requisitions ??? $145,000 Ending balance $4,000 Work in Process Inventory $5,000 Jobs completed $???? ??? Beginning balance Direct materials Direct labour Manufact. Overhead 250,000??? ??? Ending balance $30,000 Finished Goods Inventory $10,000 ????????? $870,000 Beginning balance Completed jobs ??? Ending balance $80,000 Selling expenses General expenses Admin. expenses SG&A Expense $20.000 $25,000 $25,000 During the Second quarter, the Laurentian Inc. incurred manufacturing overhead costs as follows: indirect materials $9,000, indirect labour $55,000, Utilities 120,000, Machinery expenses 290,000, and various other manufacturing overhead costs on account 35,100. Required: a) Prepare a cost of goods manufactured schedule for the first Quarter of 2017. b) Calculate the under or over-applied manufacturing overhead for the second quarter of 2017. c) Prepare the adjusting entry for the manufacturing overhead; assuming Laurentian Inc. uses proration method for the second quarter of 2017. d) Prepare an income statement for the company for the Second Quarter of 2017. e) Provide the balance sheet presentation of the manufacturing inventories at the end of the second quarter