QUESTION 1 (20%) Nadia joined PT. WIKU ascontrollerin October 2019. PT WIKU built a flat in the Depok area. Companies usenormal costing systemwith product cost components consisting of: direct material costs, direct labor costs, and factory overhead costs. In 2019, factory overhead was allocated to orders at 150% of direct labor costs. If there isunder/over applied overheadwill be closed to cost of goods sold. Fee information for 2020 follows: (in dollars) Direct Raw Material, Jan 1, 2020 25,000 Direct Raw Material Purchase, 2020 700,000 Raw Materials Directly used for production, 630,000 2020 Work In Progress, Jan 1, 2020 280,000 Work In Process Final, Dec 31, 2020 108,000 Direct Labor, 2020 880,000 Cost of Production, 2020 2,900,000Finished Goods Early, Jan 1, 2020 320,000 Finished Goods End, Dec 31, 2020 290,000 Factoryr Overhead, 2020 1,300,000 PT WIKU's revenue for 2020 is $5,550,000, and the company's selling and administrative expenses are $2,220,000. Requested: 1. Based on the above information: 3. Calculate the ending direct materials balance as of 3'1!12f2020{2 points} b.Compute the factory overhead balance allocated in 2020 (3 points) c. Calculate Cost of Goods Sold balance in 2020 [2 points} 2. Count the amountunderfover applied overhead {3 points] 3. Calculate Anderson's net operating income ifunderfover applied overheaotlosed to cost of goods sold. (5 points} 4. Do you think that the company's decision to use the normal cost approach in calculating production costs is correct when compared to the company using the actual cost approach? Explain {5 points)