Page 4 Intermediate Management Accounting Question 4 (11 marks) Koala Ltd. (Koala) uses a job order costing system and applies overhead based on direct labour costs, Koala originally estimated that manufacturing overhead would be $120,000 and direct labour would be $60,000 for 2020. During 2020, Koala's employees started work on five jobs that had the following direct material and direct labour costs: Job MAX Job ISA Job HEN Job GUS Job JIM Direct materials Direct labour $13,500 $12,500 10,275 11,300 9,025 10,250 11,125 13,400 12,000 11,350 At the end of 2020, jobs MAX and ISA were sold, jobs HEN and GUS were completed but NOT sold, and job JIM was NOT complete. There were NO opening inventories at the beginning of 2020. Actual overhead costs incurred during 2020 were as follows: Indirect labour Miscellaneous factory overhead Depreciation expense (factory equipment) Depreciation expense (office equipment) Utilities expense (factory) Utilities expense (office) Maintenance of factory equipment Indirect materials $29,000 23,000 8,500 13,800 14,500 12,900 5,200 17,100 Required: a) Calculate the 2020 year-end balances for cost of goods sold, ending finished goods inventory, and ending work-in-process (WIP) inventory, before considering any underapplied or overapplied overhead. (6 marks) b) Calculate the amount of Koala's underapplied or overapplied overhead for 2020, and describe the four methodologies for dealing with underapplied or overapplied overhead