Question 3 (15 marks) Acme Company uses a Job Order Costing System. During the month the following transactions were completed. Record the journalentries for each transaction. Aug 1 Raw materials were purchased on account for $200,000. Aug 3 $100,000 of raw materials were issued for production. 80% of these materials were used in the direct manufacture and the remainder was used indirectly. Aug 4 Employee salaries were accrued as follows: direct labour $250,00, indirect labour $50,000, selling $100,000 and administrative $75,000. Aug 7 $50,000 of advertising expense was paid in cash. Aug 31 Utility costs factory incurred and accrued for $50,000 Aug 31 Expired prepaid insurance for the month was $10,000 (70% was for factory the remain was administrative) Aug 31 Depreciation of$100,000 was recorded (75% was attributed to factory the remaining was administrative) Aug 31 Manufacturing overhead was applied to jobs at the rate of 120% of direct labour costs for the month Aug 31 Goods costing $50,000 according to their job costs sheets were transferred to the finished goods warehouse Aug 31 Sales for the month totalled $250,000 all were on account. The total cost to manufacture the goods was $75,000