Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,261,500, and management budgeted 87,000 direct labor hours. Mooresville had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of August. These transactions were recorded during August a. Purchased 5,000 square feet of oak on account at $26 per square foot b. Purchased 50 gallons of glue on account at $36 per gallon indirect material). c. Requisitioned 3,500 square feet of oak and 31 gallons of glue for production d Incurred and paid payroll costs of $187.900. Ofthis amount, $46,000 were indirect labor costs. direct labor personnel earned $22 points 025635 per hour e. Paid factory utility bill, $15,230 in cash. f. August's insurance cost for the manufacturing property and equipment was $3,500. The premium had been paid in March g. Incurred $8,500 depreciation on manufacturing equipment for August h. Recorded $2,400 depreciation on an administrative asset L Paid advertising expenses in cash, $5,500 J. Incurred and paid other factory overhead costs, $13,500. k. Incurred and paid miscellaneous selling and administrative expenses, $13,250 . Applied factory overhead to production on the basis of direct labor hours. m. Produced completed goods costing $146,000 during the month. n. Sales on account in August were $132,000. The Cost of Goods Sold was $112,000. Required: 1. Compute the firm's predetermined factory overhead rate for the yea 2. Prepare journal entries to record the August events 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on August 31 4. Prepare a schedule of Cost of Goods Manufactured and Cost of Goods Sold 5. Prepare the income statement for August. Journal entry worksheet 4 5 6 7 8 15 Incurred and paid payroll costs of $187,900. Of this amount, $46,000 were indirect labor costs; direct labor personnel earned $22 per hour. nts 02:55:46 Note: Enter debits before credits. Transaction General Journal Debit Credit d. Journal entry worksheet 23 2 4 5 6 7 815 4 points August's insurance cost for the manufacturing property and equipment was $3,500. The premium had been paid in March. 02:55:10) Note: Enter debits before credits. Transaction General Journal Dobit Credit 2Journal entry worksheet 1 2 3 4 5 6 7 815> Incurred $8,500 depreciation on manufacturing equipment for August. 4 points 02:54:53 Note: Enter debits before credits. Transaction General Journal Debit Credit 23 Journal entry worksheet