9 a C 19 e 6 Dunder Mifflin, Inc. had the following balances as of 1/1/20X1: 7 Raw Materials: $19.000 8 Work in Process: $40,000 Finished Goods: $17.000 10 11 Additional information: 12 Raw materials purchased on account was $65,000. 13 14 b Raw materials were requisitioned for use in production, $57,000 (550,000 direct and $7,000 indirect) 15 16 Accrual of factory wages $60,000; maintenance workers for the factory $15,000 17 18 d. The following costs were incurred on the factory: utilities $21,000. equipment rental $16,000, and cable, internet, phone for the factory $3,000 20 21 The accrual of property taxes on the factory was made in the amount of $15,000 22 23 f The expiration of prepaid medical insurance on factory workers was made in the amount of $10,000. 9 Depreciation was recorded on the factory equipment in the amount of $20,000 ABC Company applies overhead costs based on machine hours worked. For 20x1 the company estimated that it will work 15,000 machine hours and incur $90,000 in manufacturing overhead costs The journal entry is made to apply Manufacturing Overhead. A total of 15,500 machine hours have occurred 30 31 1. The accrual of management salaries $23,000 and office staff salaries $9.000 was made. 32 33 Depreciation on office equipment was made in the amount of $10,000 34 35 k Advertising for the period was accrued in the amount of $37.000. 36 37 1 Cable, internet, and phone expenses for Sales Offices was $32,000 and General & Administrative was $8,000 38 39 m $158,000 of goods were completed and transferred to the finished goods department. 40 41 n. Sold $500,000 (sales price) on account. The goods had a cost of $118,000 42 4 Required 24 25 26 27 28 h 29 Required: 1. Prepare journal entries to record the transactions above. (Sheet 1) *** Note: Refer to the partial chart of accounts for account names. *** 2 Post the entries to ledger "T" accounts. (Sheet 2) 3. Prepare (in good form) a schedule of cost of goods manufactured (Sheet 3) and an income statement (Sheet 4) for the year ending December 31, 20X1. The income statement must show detail of cost of goods sold, 4a. Identify whether Manufacturing Overhead underapplied or overapplied for the year, and the amount 4b. Prepare the journal entry to close manufacturing overhead. (Use the write-off approach)