Question 2.1 (Total: 36 marks) The following costs are attributed to the Gandalf and Company: Purchase of raw materials (all direct) $291,100 Direct labour cost 141,800 Manufacturing overhead costs 198,100 Change in inventories: Decrease in raw materials $9,100 Decrease in work in process 4,100 Decrease in finished goods 13,200 Gandalf and Company used a 120% predetermined overhead rate based on direct labour cost. Submission Instructions: 1. Calculate the cost of goods manufactured. 2. What was the cost of goods sold before adjusting for any under or over applied overhead? 3. By how much was manufacturing overhead cost under or over applied? 4. Prepare a summary journal entry to close any under or over applied manufacturing overhead cost to the cost of goods sold. Is such an entry appropriate in this situation? Why or why not