Problem 1 Horton Company uses a job costing system, and manufacturing overhead is applied on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $1,050,000 of manufacturing overhead costs and use 70,000 machine hours. Horton Company recorded the following events during the month of March. (a) Beginning balances: Raw materials inventory (RM): $100,000 Work in process inventory (WIP): $150,000 Finished goods inventory (FGs): $30,000 (b) Purchased 200,000 kilograms of raw materials on account. The cost was $4.00 per kilogram. (c) Issued 150,000 kilograms of materials to production. Assume all materials issued are at $4 per kilogram. (d) Incurred $250,000 of direct labour costs and $50,000 of indirect labour costs. (e) Recorded depreciation on equipment for the month, $18,000. (f) Recorded $42,000 of insurance costs for the manufacturing property. (g) Recorded $35,000 for utilities and other miscellaneous items for the manufacturing plant. (h) Completed job M11 costing $170,000 and job M12 costing $800,000 during the month and transferred them to Finished Goods inventory account. (i) Shipped job M12 to the customer during the month. () Used 10,000 machine hours during March. Required: Complete the relevant T-accounts to show the flow of costs through the company's accounts. manufacturing