Mountain Manufacturing Company produces custom stamped metal parts for a variety of customers in Western Canada. During January, the company had two jobs in process. Job A was an order for 1,200 stamped parts and was started in December. Job A had $12,000 of manufacturing costs already accumulated on January 1. Job B was an order for 1,000 stamped parts and was started in January. The company used a job-order costing system. Total manufacturing overhead for the year was estimated to be $576,000. Mountain Manufacturing uses direct labour-hours as the allocation base to establish its predetermined overhead rate. A total of 19,200 direct labour-hours are expected to be worked during the year. On January 1, the start of the company's fiscal year, inventory account balances were as follows: Raw Materials $15,000 Work in Process Finished Goods $12,000 $10,000 During the month of January, the following transactions were completed: a. Raw materials were purchased for $30,000. b. Raw materials were requisitioned for use in production in the amount of $35,000. Of this amount, $25,000 was related to manufacturing ($5,000 for Job A and $20,000 for Job B) and the rest were indirect materials. c. In January, $32,000 of direct labour ($7,000 for Job A and $25,000 for Job B). In addition, $2,000 of indirect labour costs were incurred. d. In January, the company incurred the following general factory costs: Utilities expense of $8,000, rent on factory equipment of $8,000, and insurance costs of $1,900. e. The company recognized $10,000 in depreciation on factory equipment. f. The company applied manufacturing overhead to Job A and Job B. A total of 350 direct labour-hours were spent completing Job A and 1,250 direct labour-hours were recorded for Job B. g. Administrative salaries of $30,000 were paid in January. h. Selling expenses totalled $6,000 in January. i. Job A was completed in January. The completed cost of Job A according to the job cost sheet was $34,500. Job B remains in process at the end of January. j. Sales of all 1,200 units in Job A were recorded on account in the amount of $48,300 in January. 2. Prepare T-accounts. Determine ending balances in the inventory accounts and in the Manufacturing Overhead account. Beg. Bal. End. Bal. Accounts Receivable 48,300 48,300 Beg. Bal. End. Bal. Raw Materials 0 Work in Process Finished Goods Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 Beg. Bal. Manufacturing Overhead Beg. Bal. Accounts Payable End. Bal. 0 End. Bal. 0 Salaries & Wages Payable Salaries Expense Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 Sales Beg. Bal. End. Bal. Beg. Bal. 0 Accumulated Depreciation End. Bal. 0 Beg. Bal. Cost of Goods Sold End. Bal. Beg. Bal. 0 Selling Expenses End. Bal. 0 3. Prepare a schedule of cost of goods manufactured. Mountain Manufacturing Company Schedule of Cost of Goods Manufactured Direct materials: Materials available for use Materials used in production Total manufacturing cost 0 0 $ 0 0 0 Cost of goods manufactured $ 0 Journal entry worksheet 1 Record the entry to close any balance in the manufacturing overhead account to cost of goods sold. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal 4b.Determine the adjusted Cost of Goods Sold. The adjusted Cost of Goods Sold 5. Prepare an income statement for the month of January. Mountain Manufacturing Company Income Statement For the Month ended January 31 Selling and administrative expenses: 0 0 0