Question 4 Job Costing Suggested time 20 minutes 10 Marks Baskin Company uses a job-order costing system to manufactures large tiger cages for exotic pet owners. On January 1, the beginning of the current year, the company's inventory balances were as follows: Raw materials Work in process Finished goods $ 22,500 $ 12,600 $ 31,300 Baskin Company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,300 machine-hours and incur $154.795 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $226,000. b. Raw materials were requisitioned for use in production: $203,000 (85% direct and 15% indirect). C. Baskin Company used to operate solely with volunteers, but recently hired paid employees. The following costs were incurred for employee services: Direct labour Indirect labour Sales commissions Admin salaries $170.400 $ 29,600 $ 39,900 $ 85,200 d. Heat, power, and water costs were incurred in the factory: $47,850. e. Depreciation was recorded for the year: $67,800 (75% relates to factory operations, and 25% relates to selling and administrative activities). f. Manufacturing overhead cost was applied to production. The company recorded 42.600 machine-hours for the year. Required Prepare journal entries to record the transactions for the year Account Debit Credit