Question 1 (12 marks) Jerry's Company had the following cost records for the past year: Direct materials used in production: $2,250,000. Direct labour cost: $2,345,000. Manufacturing overhead applied: $3,700,000. Selling and administrative expenses: $2,000,000. The beginning inventory balances of the year and ending inventory balances at the end of the year were as follows: Beginning Balance Ending Balance Direct materials Inventory $50,000 $20,000 Work in process Inventory $150,000 $100,000 Finished goods Inventory $10,000 $5,000 Required: 1. What was the cost of direct materials purchased for the past year? 2. What was the cost of goods manufactured for the past year? 3. What was the cost of goods sold for the past year? 4. If the sales revenue for the past year was $25,000,000 what was Jerry Company's net profit for the past year? Prepare an income statement to show your calculations. 5. The accountant of Jeny Company has become aware that the actual manufacturing overhead for the past year was $3,750,000. What was Jerry Company's actual cost of goods sold for the past year? 6. What impact does the closing of the under- or over-applied overhead have on the cost of goods sold and profit of Jerry Company? Show all calculations. (2 + 2 + 2 + 2 + 2 + 2 = 12 marks) Start your answer here