Part 1 Problem on Flow of costs. (30pts.) Aldo Products Inc. uses the Job Order Costing system. The company provides us with the balances of the inventory accounts as of April 1, the date on which its fiscal year begins. Raw material Work-in-Process Finished Goods $34,000 22,000 50,000 During the year the company carried out the following transactions: -Purchased raw material on credit, $190,000 -Raw material was requested for production, $190,000 (80% direct) -Employee wages were accrued: direct labor $210,000; indirect labor $92,000 and administrative and sales salaries $98,000 -Electricity, water, and other utility costs incurred at the factory: $68,000. -Advertising costs, $102,000 -Prepaid insurance expired during the year, $30,000 (90% awarded to factory) -Asset depreciation, $200,000 (85% factory assets) -Manufacturing Overhead' was applied to production at a rate of 200% of the direct labor cost. -Products that cost $700,000 to make were transferred to Finished Product. -Sales reached $1,100,000, all on credit. Its cost of sale was $730,000. Requirements: 1.Present journal entries to recognize these transactions. 2.Prepare T Accounts for the following accounts: Raw Material, Work in Processes, Finished Goods, Manufacturing Overhead and Cost of Goods Sold and post to these accounts as applicable and determine the final balance for each. 3.Determine if the 'Manufacturing Overhead' is overestimated or underestimated (Under or overapplied) and prepare the journal entry to close the balance against the 'Cost of Goods Sold' account 4.Prepare the 'Income Statement' for the year.