Vaughan Company has been in business for 2 years. At the beginning of Year 3 , there is 1 job (Job \#19) in process. At the end of Year 2, costs for this job were $18,000. Vaughan Company uses a predetermined FOH rate to allocate FOH. Estimated FOH for the year was expected to be $37,500 and estimated DL $ (the cost driver) was expected to be $30,000 At the beginning of Year 3 there is also 1 job in finished goods, Job $17, at a cost of $19,000. Raw Materials has a beginning balance of $20,000. Jobs 20 \& 21 were started in Year 3 . During Year 3, the following events happened: (a) Vaughan purchased $30,000 of raw materials on account. (b) Paid $30,000 of labor. (c) Direct Material and Direct Labor used during the year were as follows: (d) Indirect materials used during this year were $1,700, Indirect labor was $2,000, and depreciation on the factory equipment was $8,000. (e) $22,900 of other factory overhead was incurred on account. (f) Job \#19 and Job \#20 were completed. (g) Job \#17 was sold for $26,000 on account and job \#19 was sold for $60,000cash. (h) Selling and administrative expenses were $8,000 for the year and were paid in cash. Required: 1. Prepare all journal entries required for the above information on the next page. 2. Calculate if FOH is under/over applied and by how much. 3. Prepare the journal entry to close out FOH at the end of the year. 4. Calculate net income. Wages Payable (1) (1) FOH CGS Date Accounts Debit Credit (2) Calculate if FOH is under/over applied and by how much. (3) Prepare the journal entry to close out FOH at the end of the year. (4) Calculate net income