Quality boxes limited manufactures fine handcrafted, wooden jewellery boxes. The company uses a job costing system for its production costs, and manufacturing overhead is applied on the basis of direct labour costs to all jobs. It's predetermined manufacturing overhead rate is based on a cost formula that is estimated $390,000 of manufacturing overhead for an estimated activity level of $100,000 direct labor cost. During the month of July, the company processed three jobs: B50, C81, and G60, of which B50 was started in June. July 1 Inventories: Direct Materials Work-in-Process Finished Goods $36,600 $ 41,200 0 Direct materials purchased in July Direct materials issued to production: B50 C81 G60 Direct labour hours used for production ($30/hour) in July: B50 C81 G60 Other factory overhead costs incurred in July: Indirect labour Rent Utilities Repairs and maintenance Depreciation Other expenses Selling and administrative expenses incurred in July Selling and administrative salaries July 31 ? ? 0 $56,000 $ 16,500 $ 25,020 $ 14,050 3,550 hours 2,850 hours 1,650 hours $ 208,500 $ 132,000 $ 218,250 $ 189,000 $ 131,600 $ 56,500 Advertising expenses $45,500 $28,300 $11,700 Administrative expenses In July, Job B50 was completed and sold with a 20 percent mark-up. Jobs C81 and G60 were still in process. Question 1.3 Prepare a schedule of cost of goods manufactured for the company for July (Hints: You need to figure out (10 marks) ending work-in-process inventory to prepare cost of goods manufactured amount). Your Answer (add extra rows/columns to the template if required): Quality boxes limited Schedule of Cost of Goods Manufactured Show your workings here (expand the space as required): Question 1.4 Prepare an income statement for the company for July. Assume that the company's underapplied or (6 marks) overapplied overhead is closed to the Cost of Goods Sold. Your Answer (add extra rows/columns to the template if required): Quality boxes limited Income Statement Show your workings here (expand the space as required):