QUESTION 2 (22 marks) The following inventory information is available for Gage Manufacturing Corporation for the year ended December 31, 2021: Beginning Ending Inventories: Raw materials $27,000 $18,000 Work in process 9,000 17.000 Finished goods 11.000 5,000 Total $37.000 $40.000 In addition, the following transactions occurred in 2021: Raw materials purchased on credit/account, $73,000. (2) Raw materials requisitioned: For production For general purposes 80% 20% . (3) I . Factory labor costs used and paid: For production For general purpose $85,000 $12,000 (4) Incurred the following costs during the year Factory utilities $ 5.800 Depreciation on manufacturing machinery $9.000 Manufacturing machinery repairs $.8.200 Factory insurance $28.000 (Credit Accounts Payable and Accumulated Depreciation) (5) Factory overhead applied, 72% of direct labor costs. REQUIRED: (a) Joumalize the above transactions. Explanation is not required. (13 marks) (b) AWN From an analysis of the accounts, compute the following: 1. Raw materials used. 2. Cost of goods manufactured, based on applied overhead. 3. Cost of goods sold. 4. Under- or overapplied overhead and by how much? (2 marks) (3 marks) (2 marks) (2 marks)