nalysis of Cost Flows and Inventories under Job-Order CostingQuickmix Ltd. manufactures electric mixers and chopping tools. A job-order costing system is used, since the products are manufactured in batches rather than on a continuous basis. The company started operations on January 1, 2020. Operating activities during the first 11 months of the year (through November 30) resulted in the following balances in selected accounts:Raw Materials#Manufacturing OverheadBalance36,0002,260,000*?Balance?Work-in-ProcessCost of Goods SoldBalance 1,200,000Balance 14,200,000Finished GoodsBalance 2,785,000# The raw materials account includes (both) direct materials and indirect materials.* This figure represents the debits to the manufacturing overhead account for the first eleven months of the year.The following additional information is available on the company:a.The work-in-process inventory at November 30 consisted of two jobs:Total Costas ofJob No.UnitsItemNovember 305011 .............48,000Professional mixers$700,0006011 .............39,000Base mixers 500,000$1,200,000b.The finished goods inventory at November 30 consisted of five separate items in stock:ItemsQuantity and Unit Cost Total CostProfessional mixers.........4,000 units at $20 each$80,000Premium mixers ..............115,000 units at $17 each1,955,000Brass choppers ...............10,000 units at $14 each140,000Steel choppers ................5,000 units at $16 each80,000Mixer utensil set ..............100,000 units at $5 each 500,000$2,755,000

2c.Manufacturing overhead is applied to jobs on a basis of direct labour-hours. For 2019, management estimated that the company would work 450,000 direct labour-hours and incur $3,150,000 in manufacturing overhead costs.d.A total of 367,000 direct labour-hours were worked during the first 11 months of the year.Items (e) through (j) below summarize the activity that took place in the company during the month of December 2020.e.A total of $708,000 in raw materials was purchased during the month.f.Raw materials were requisitioned as follows:Job No.Quantity and Items Materials5011 ................................See above$210,0006011 ................................See above6,0001021 ................................30,000 Steel choppers181,0002021 ................................10,000 Premium mixers92,0003021 ................................50,000 Costco mixers163,000 ..................................Indirect materials 20,000$672,000g.The payroll during December was as follows:Job No.HoursTotal Cost5011 ...............................................6,000$62,0006011 ...............................................2,50026,0001021 .............................................18,000182,0002021 ..................................................5005,0003021 ...............................................5,00052,000Indirect labour ................................8,00084,000Sales and administration .......... 120,000$531,000h.Other costs incurred in the factory during December were:Amortization ..................................$62,500Utilities ............................................15,000Insurance ..........................................1,000Property taxes...................................3,500Maintenance ................................. 5,000$87,000i.Jobs completed during December and the units transferred to the finished goods warehouse were as follows:Job No.QuantityItems5011 ...............................48,000 unitsProfessional mixers6011 ............................ 39,000 unitsBase mixers1021 ................................30,000 unitsSteel choppers3021 ...............................50,000 unitsCostco mixers

3j.Finished products were shipped to customers during December as follows:ItemsQuantityProfessional mixers ........................................13,000 unitsPremium mixers..............................................32,000 unitsBase mixers ....................................................20,000 unitsCostco mixers .................................................22,000 unitsBrass choppers.................................................5,000 unitsSteel choppers................................................10,000 unitsMixer utensil set..............................................26,000 unitsRequired:1. Determine the amount of under/over-applied manufacturing overhead for the year 2019 and indicate whether it is under-applied or over-applied. (6 marks)2. (i) In general, what is the appropriate accounting treatment (for management purposes) for under/over-applied overhead in general (at December 31, 2020). (2 marks)(ii) For this specific case, discuss what the appropriate accounting treatment should be and why?(2 marks)3. Determine the dollar balance in the work-in-process inventory account as of December 31, 2020. Show all computations. [Ignore any under/over-applied overhead.] (5 marks)4. For the Professional mixers, determine the dollar balance in the finished goods inventory account as of December 31, 2020. Assume a FIFO (first-in-first-out) flow of units. Show all computations. [Ignore any under/over-applied overhead.] (5 marks