Raw Material Inventory Work-in-Progress Inventory Finished Goods Inventory Beginning of Year $ 200 210 220 End of Year $ 190 165 125 Machine Hours Overhead Direct Labor Costs Material Purchases Budget 100 hours $ 350 $ 70 $ 170 Actual 90 hours $340 $ 90 $180 All materials are direct materials. Overhead is allocated based on Machine Hours. Under/over applied overhead is allocated to COGS. Instructions a) Briefly Describe how Normal Costing differs from Actual Costing? b) Why is normal costing often preferred over actual costing? c) Calculate Cost of Goods Manufactured and Cost of Goods Sold based on Normal Costing