Required: 1. Prepare journal entries to record the preceding transactions. 2. Post the entries in (1) above to T-accounts (don't forget to enter the beginning balances in the inventory accounts). 3. Is Manufacturing Overhead underapplied or overapplied for the year? Prepare a journal entry to close any balance in the Manufacturing Overhead account to cost of Goods Sold. 4. Prepare an income statement for the year. Hogle Corporation is a manufacturer that uses job-order costing. On January 1, the beginning of its fiscal year, the company's inventory balances were as follows: Raw materials $20,000 Work in process $15,000 Finished goods... $30,000 The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company's predetermined overhead rate was based on a cost formula that estimated $450,000 of total manufacturing overhead for an estimated activity level of 75,000 machine hours. The following transactions were recorded for the year: a. Raw materials were purchased on account, $410,000. b. Raw materials were requisitioned for use in production, $380,000 ($360,000 direct materials and $20,000 indirect materials). c. The following costs were accrued for employee services: direct labor, $75,000; indirect labor, $110,000, sales commissions, $90,000; and administrative salaries, $200,000. d. Sales travel costs were $17,000. e. Utility costs in the factory were $43,000. f. Advertising costs were $180,000. g. Depreciation was recorded for the year, $350,000 (80% relates to factory operations, and 20% relates to selling and administrative activities). h. Insurance expired during the year, $10,000 (70% relates to factory operations, and the remaining 30% relates to selling and administrative activities). i. Manufacturing overhead was applied to production. Due to greater than expected demand for its products, the company worked 80,000 machine-hours on all jobs during the year. j. Goods costing $900,000 to manufacture according to their job cost sheets were completed during the year. k. Goods were sold on account to customers during the year for a total of $1,500,000. The goods cost $870,000 to manufacture according to their job cost sheets