Please anserwe question #3 with the information proviede and explain

Problem GRP1 Basic Cost System: Journal Entries: Financial Statements ABC Manufacturing Co. The post-closing trial balance of ABC Manufacturing Co. at September 30 is reproduced as follows ABC Star Manufacturing Co. Post-Closing Trial Balance September 30, 2011 Cash Accounts Receivable Finished Goods 24,000 Work in Process 4.000 Materials Building 156,000 Accumulated Depreciation Building Factory Equipment 23,400 108,000 Accumulated Depreciation-Factory Equipment Office Equipment 12,000 Depreciation-office Equipment Accounts Payable Capital Stock 30.000 172,000 Retained Earnings Total $343.000 $343.000 During the month of October, the following transactions took place: a. Raw materials at a cost of $60,000 and general factory supplies costing $8,000 were purchased on account. (Materials and supplies are recorded in the materials account.) b. Raw materials to be used in production costing $41,000 and miscellaneous factory supplies costing $5,500 were issued. Wages and salaries incurred and paid for the month were as follows: factory wages (including$2,500 indirect labor), $34.000, and selling and administrative salaries, $5,000. (Ignore payroll withholdings and deductions.) d. Distributed the payroll in (c). e. Depreciation was recorded for the month at an annual rate of 5% on the building and 20%on the factory equipment and office equipment. The sales and administrative staff uses approximately one-fifth of the