Oil Field Equipment Company is a small company that manufactures specialty heavy equipment for use in Alberta oil$-$fields. The company uses a job$-$order costing system and applies manufacturing overhead cost to jobs on the basis of the direct labour$-$hours. At the beginning of the current year, the following estimates were made to compute the predetermined overhead rate: manufacturing overhead cost, $$360,000,$ and $900$ direct labour$-$hours. The following transactions took place during the year $($all purchases and services were acquired on account$)$:

a$.$ Raw materials were purchased for use in production: $$200,000.$

b$.$ Raw materials were requisitioned for use in production $($all direct materials$)$: $$185,000.$

c$.$ Utility bills were incurred in the factory: $$70,000(90\%$ related to factory operations and the remaining related to administrative activities$).$

d$.$ Costs for salaries and wages were incurred as follows:

Direct labour $(975$ hours$)$ $ $230,000$

Indirect labour $ $90,000$

Selling and administrative salaries $ $110,000$

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e$.$ Maintenance costs were incurred in the factory: $$54,000.$

f$.$ Advertising costs were incurred: $$136,000.$

g$.$ Depreciation was recorded for the year: $$95,000(80\%$ relates to factory assets, and the remainder relates to selling and administrative equipment$).$

h$.$ Rental cost was incurred on buildings: $$120,000(85\%$ of the space is occupied by the factory, and the remainder is related to selling and administration facilities$).$

i$.$ Manufacturing overhead cost was applied to jobs: $$\_\_\_\_\_?$

j$.$ Cost of goods manufactured for the year was $$770,000.$

k$.$ Sales for the year $($all on account$)$ totalled $$1,200,000.$ These goods cost $$800,000$ according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were as follows:

Raw Materials $ $30,000$

Work in Process $ $21,000$

Finished Goods $ $60,000$

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Required:

$1.$ Prepare journal entries to record the above data. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$2.$ Post your entries to T$-$accounts. $($Don$$t forget to enter the opening inventory balances above.$)$ Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account.

$3.$ Prepare a schedule of cost of goods manufactured.

$4.$ Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. Prepare a schedule of cost of goods sold. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$5.$ Prepare an income statement for the year.

$6.$ Job $412$ was one of many jobs started and completed during the year. The job required $$8,000$ in direct materials and $39$ hours of direct labour time at a total direct labour cost of $$9,200.$ The job contained only four units. If the company billed at a price of $60\%$ above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?