NoraCompany uses a predetermined overhead rate and a job-order costing system to applymanufacturing overhead cost to jobs based on the cost of materials used in production. The company made estimates as a basis for calculatingthe predetermined overhead rateatthe beginning of the year: manufacturing overhead cost $300,000anddirect materials cost $200,000. The transactions happened during the yearwere as follows(all purchases and services were acquired on credit):

a. Raw materials requisitioned$100,000for production (all direct materials)

b. Manufacturing overhead cost was applied to jobs.

c. Costs for salaries incurred:Direct labor $160,000, Indirect labor $50,000,andSelling and administrative salaries $70,000.

d. Utility bills incurred in the factory $20,000.

e.At the year end, the manufacturing overhead was underapplied by $60,000.Accountingmanagerdecided to make adjustment.

Required:

Prepare journal entries to record the transactionsabove by showingthe letter (a)to(e).(12 marks)