The Aral Manufacturing Company operates a job-order costing system and applies overhead cost on the basis of direct labour hours. In computing an overhead rate for the year, the company's estimates were as follows: manufacturing overhead cost, $330,000, direct labour cost, $480,000 and direct labour hours, 24,000 hours. The following transactions occurred during their fiscal year ended October 31, 2021:

a) Raw materials were purchased on account: $452,500.

b) Of the raw materials that were used during the year, $42,000 were indirect raw materials.

c) Selling and administrative salaries were $150,000.

d) Total factory payroll was $540,000, a portion of which was indirect. A total of 23,600 direct labour hours were worked during the year. There was no change to the average direct labour wage rate during the year.

e) Marketing cost was incurred: $70,000.

f) Depreciation charges for the year totaled $180,000 (75% related to fabrication and shop assets and 25% related to selling and administrative assets).

g) Utilities incurred during the year in the factory was $47,500; selling and administrative utilities were: $12,500.

h) Opening inventories and the unadjusted closing inventories were: Opening Closing Raw Materials: 20,000 25,000 Work-In-Process: 25,500 ? Finished Goods: 45,000 ?

i) The ending work-in-process inventory on October 31, 2021 had incurred $9,000 of direct raw materials and 400 direct labour hours.

j) Goods that cost $1,205,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.

k) Sales for the year totalled $2,000,000. The unadjusted cost of goods sold was $1,200,000. REQUIRED:

1. Calculate the manufacturing overhead application rate and the manufacturing overhead applied for the year. (2 marks)

2. Calculate the specific costs (direct materials, direct labour AND applied manufacturing overhead) comprising the ending work in process inventory. (3 Marks) Direct materials Direct labour Applied manufacturing overhead Ending WIP Inventory

3. Record the fiscal year 2021 transactions (including the opening and closing balances) in the following seven "T" accounts: raw materials inventory, work-in-process inventory, finished goods inventory, cost of goods sold, and manufacturing overhead, operating expenses and sales. Journal entries are not required - if you prepare JE's, make sure to post them to T-Accounts and calculate the ending balances (18 marks).