Question 2 Chester Inc. began operations on June 1, 2020. The company applies manufacturing overhead to production based on direct labour cost at a rate of 125%. Only one job, Job C31, was started in June. The total manufacturing cost assigned in June was 58.000. Information from job cost sheets for July to September shows the following: Manufacturing costs assigned in each month to jobs Job No. July August September C31 $12.900 $4,100 $2.700 C32 6.100 4,700 9,000 4.950 2,200 8,600 C35 2,400 5,300 C33 C34 No jobs were completed in July. Jobs C33 and C34 were completed in August. Jobs C32 and C35 were completed in September. Each job was sold on account for 40% above its manufacturing cost in the month following its completion. Required (a)(3.5 marks) Calculate the balance in Work in Process Inventory at the end of August. Clearly show which jobs make up this balance. (b) (2.5 marks) Calculate the balance in Finished Goods Inventory at the end of September. Clearly show which jobs make up this balance. (c)(3.5 marks) Provide the journal entries for the completion of goods in September and the sale of goods in September (d) (2.5 marks) In July, $10,000 of direct materials was issued to production. How much were the direct labour and applied manufacturing overhead in July? (e) (2 marks) "The use of normal costing results in inaccuracy in the costing of jobs." Provide two reasons why this statement is true