Timmy's company manufactures widgets. One of their clients requested some special custom widgets, which was labeled as Job ID #112 and requires 3&1) direct labor hours. The company allocated overhead cost to the job on the basis ofdirect labor hours worked. For the current year, the company estimated that it would require 12,500 direct labor hours and incur $250,0) of manufacturing overhead. The following transactions were recorded for the year: - Purchased $150,011) of raw materials using ash. |:l - Raw materials including direct materials $220,003 and indirect materials $63,003 were put into production. -The company incurred 525030.) for direct labor and 5125311) for indirect labor. - During the period, the company has also incurred the following factory costs: $?0,CIIJ for utilities and $25,011) for supplies. - The company recognized $253.30 in depreciation of factory equipment. - $305,030 of the job was completed by the end ofthe period. - The widgets were sold on account for $1,650,0CD. The cost to manufacture these products was $1,350,0CD. a} Calculate total product costs for Job #112. Job #112 mating aard: b} Complete the following manufacturing journal entries representing job order costing. Date Description \"m:- ___ _ To record purchase of raw materials with cash _ _ Manufacturing Overhead _ ___ _ Enter direct and indirect materiai's into production _ 2 WIP Manufacturing Overhead Raw Materials Enter direct and indirect materials into production 3 WIP Manufacturing Overhead Wages Payable To apply direct and indirect labor 4 Manufacturing Overhead Accounts Payable To record factory costs for utilities and supplies 5 Manufacturing Overhead Accumulated Depreciation To record depreciation on factory equipment 6 WIP Manufacturing Overhead To record allocated manufacturing overhead 7 Finished Goods Inventory WIF To transfer WIP to finished goods inventory 8 Accounts Receivbale Sales Revenue To record sales revenue 9 Cost of Goods Sold Finished Goods Inventory To record cost of goods sold c) In your own words, describe how product costing information could be used to make positive management decisions