PQB lac designs and fabricales movie props such as mock-ups of star fighters and cybemetic robots, The company's balance stueet as of January 1 , the beginning of the current year, appears below Since each prop is a,urique design and may require anything from a few hours to a month or more to complete, pqe uses a job order cosing system. Overthead in the fabncation stop is charged to props on the basis of direct labour cost. The company estimated that it would incur $80,000 in manufacturing cyerhead and $100,000 in direct labour cost during the year, The following transactions were. recorded during the year a. Raw matetials, such as wood, paints, and metal sheeting, were purchased on account: $80,000. b. Raw materials were issued to production: $90,000 ( $5,000 of this amount was for indirect materials) c Payroll costs were incurred and paid: direct labour, $120,000, indirect labour, $30,000; and selling and administrative salaries, $75,000. d. Fabrication shop utilities costs were incurred $12,000 e. Depreciation was recorded for the year $30,000 ( $5,000 on selling and administratwe assets, $25,000 on fabrication shop assets) f. Prepaid insurance expired $4,800 (\$ $4,000 related to fabrication shop operations, and $800 related to selling and administrative activities). g. Shipping experises were incurred $40,000. h. Other manufactiring overthead costs were incurred $517,000 (credit Accounts Payable) 1. Montacturing overthead was applied to production. Overticad is applied on the basis of direct labour cost. 1. Movie props that cost $310,000 to produce according to their job cost sheets were completed. K. Sales for the year totalled $450,000 and were all on account. The total cost to produce these movie props was $300,000 according to their job cost sheets. 1. Coliections on account fron customers totalled $445,000. in. Payments on account to suppliers totalled $150,000 1. Movie props that cost $310,000 to produce according to their job cost sheets were completed K. Sales for the year totalied $450,000 and were all on account. The total cost to produce these movie props was $300,000 according to their job cost sheets 1 Collections on account from customers totalled $445,000 in Payments on account to suppliers totalled $150,000 PQB lac designs and fabricales movie props such as mock-ups of star fighters and cybemetic robots, The company's balance stueet as of January 1 , the beginning of the current year, appears below Since each prop is a,urique design and may require anything from a few hours to a month or more to complete, pqe uses a job order cosing system. Overthead in the fabncation stop is charged to props on the basis of direct labour cost. The company estimated that it would incur $80,000 in manufacturing cyerhead and $100,000 in direct labour cost during the year, The following transactions were. recorded during the year a. Raw matetials, such as wood, paints, and metal sheeting, were purchased on account: $80,000. b. Raw materials were issued to production: $90,000 ( $5,000 of this amount was for indirect materials) c Payroll costs were incurred and paid: direct labour, $120,000, indirect labour, $30,000; and selling and administrative salaries, $75,000. d. Fabrication shop utilities costs were incurred $12,000 e. Depreciation was recorded for the year $30,000 ( $5,000 on selling and administratwe assets, $25,000 on fabrication shop assets) f. Prepaid insurance expired $4,800 (\$ $4,000 related to fabrication shop operations, and $800 related to selling and administrative activities). g. Shipping experises were incurred $40,000. h. Other manufactiring overthead costs were incurred $517,000 (credit Accounts Payable) 1. Montacturing overthead was applied to production. Overticad is applied on the basis of direct labour cost. 1. Movie props that cost $310,000 to produce according to their job cost sheets were completed. K. Sales for the year totalled $450,000 and were all on account. The total cost to produce these movie props was $300,000 according to their job cost sheets. 1. Coliections on account fron customers totalled $445,000. in. Payments on account to suppliers totalled $150,000 1. Movie props that cost $310,000 to produce according to their job cost sheets were completed K. Sales for the year totalied $450,000 and were all on account. The total cost to produce these movie props was $300,000 according to their job cost sheets 1 Collections on account from customers totalled $445,000 in Payments on account to suppliers totalled $150,000