PART 1 Kirpalani Stores manufactures customized household furnishings. The company uses a perpetual inventory system and has a highly labour-intensive production process, so it assigns manufacturing overhead based on direct labour cost. Kirpalani expects to incur $2,205,000 of manufacturing overhead costs and estimated direct labour costs of $3,150,000 during 2019. At the end of December 2018, Kirpalani reported work in process inventory (Job 551) of $93,000 the following events occurred during January 2019. i) Purchased materials on account, $392,000. ii) Incurred manufacturing wages of $400,000 iii) Requisitioned direct materials and used direct labour in manufacturing. ivi Issued indirect materials to production, $30,000. v) Charged indirect manufacturing wages to production, $60,000. vi) Depreciation of production machinery, $85,000 vii) Other manufacturing overhead costs incurred on units 551 to 554 amounted to $49,000. viii) Allocated overheads to jobs at the predetermined rate a) Units completed: 551,552&554. x) Sold units 551 \& 554 (billed customers at a margin of 3331% on sales) Required: (a) Compute Kirpalani's predetermined manufacturing overhead rate for 2019. (1\% marks) (b) Calculate the total manufacturing costs for each job. (4\% marks) (c) Using the total figures, record the above transactions in the general journal. (9\% marks) (d) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account, clearly showing the balance before closing the account. State the journal entries necessary to dispose of the variance. Assume that the manufocturing overhead voriance is immoterial. (3 marks) (e) What is the balance in the Cost of Goods Sold sccount ofter the adjustment? (2 marks) (i) Compute Kirpalani's gross profit earned on the jobs, ofter adjusting for the manufacturing overhead variance (2 marks) (is) Post the appropriate entries to Work in Process Inventory Control account \& determine the account balance on January 31. (2\% marks)