Problem 2 (75 points) The Dougherty Furniture Company manufactures tables. In March, the production department had budgeted allocation base (i.e. cost driver) of 4,000 machine-hours. The budgeted manufacturing overheads for the month were $57,500. The company uses a budgeted overhead rate for applying overhead to production. For Job 100A, the actual costs incurred in the production department were as follows Raw materials purchased Direct materials used Indirect materials used Direct labor incurred Indirect labor incurred Depreciation on plant equipment incurred Plant utilities incurred Production Department $110,000 $32,500 $7,500 $52,500 $11,000 $16,250 $1,000 Job 100A actually incurred 800 machine-hours in the production department. Required: Prepare the necessary journal entries to summarize the following transactions for the production department. (30 points) 1) purchases of raw materials on credit 2) usage of direct materials and indirect materials 3) manufacturing payroll for direct labor and indirect labor paid in cash 4) depreciation on plant equipment 5) plant utilities paid in cash 6) allocation of manufacturing overhead to Job 100A a. Prepare an adjusting entry for Job 100A to write off the difference between allocated and actual overhead directly to Cost of Goods Sold. (20 points) b. c. Ending balances in the following accounts are: Raw Materials 120,000 Work-in-Process 100,000 Finished Goods Cost of Goods Sold 4,150,000 750,000 Prepare an adjusting entry for Job 100A that prorates the difference between allocated and actual overhead using appropriate ending account balances. (25 points)