Question 1 Manufacturing Cost Flows O. Bese, the management accountant for a firm, has been keeping efficient records to date in spite of a low kilojoule diet necessitated by a weight problem. On the morning of 1 September 20X4, however, he went berserk from hunger, and consumed the accounting records. He was overpowered and rushed to hospital. Unfortunately his condition depreciated and he was written off at 4 p.m. An autopsy (with a qualified doctor in attendance) disclosed the following information: Ledger balances: Materials Control 31/8/X4 $40 000 Work-in-Process 1/8/X4 $6 000 Finished Goods 1/8/X4 $50 000 Accounts Payable 1/8/X4 $20 000 An interview with the factory foreman revealed the following additional information: 1)Accounts Payable are for direct materials only. The balance on 31 August was $20 000. Payments of $50 000 were made during August. 2)A stocktake after O. Bese's autopsy revealed only one unfinished job in the factory. Source documents showed that $3000 (1000 hours) of direct labour and $5000 of direct material had been charged to the job. 3)The finished goods inventory as at 31 August was $46 000. 4)Overhead is allocated by using a predetermined rate that is set at the beginning of each year by forecasting the year's overhead and using forecast direct labour hours as a cost driver. The budget for 20X4 called for a total of 180 000 hours of direct labour and $720 000 of factory overhead. 5)Jobs sold during August realised $240 000. 6)A total of 15 500 direct labour hours were worked during August. All factory workers receive the same rate of pay. 7)Finished jobs are priced at a mark-up of 50% on manufacturing cost. Required: 1. Calculate the balance of Materials Control account at 1/8/X4. 2. Prepare a schedule of cost of goods manufactured. 3. Prepare a schedule of cost of goods sold