Show me the steps to solve Question $1(60$ minutes, $42$ marks$)$

Clifford Industries manufactures unique custom$-$made camping trailers.At the start of its most recent fiscal ye

ar$,$ the company's inventory balances were as follows:

Raw materials:$$48,000$

Work$-$in$-$process:$$70,000$

Finished goods:$$108,000$

The company applies overhead cost to jobs on the basis ofmachine$-$hours worked. For the current year $(2020),$ the company estimated that it would work $28,000$ machine$-$ hours and incur $$742,000$ in manufacturing overhead cost.The following transactions were recorded in $2020$:

a$)$ Raw materials costing $$534,000$ were purchased from suppliers on account.

b$)$ Of the raw materials that were issued into production $80\%$ were direct raw materials and $20\%$ were indirect raw materials.The ending raw material inventory on December $31,2020$ was $$42,000$

c$)$ Costs for employee services were as follows: Assembly line $($direct labour$)$ workers$$420,000$ Factory maintenance $($indirect labour$)$$$210,000$ Selling and administration salaries$$375,000$

d$)$ Advertising costs were incurred at $$115,000$

e$)$ Property tax expense during the year; $$65,000.$Of this $$50,000$ related to the operation of the factory and the remainder to selling and administration.

f$)$Depreciation recorded for the year was $$40,000.(80\%$ factory, the balance to selling and administration$).$

g$)$ Other costs for the year totaled $$440,000,$ of which $75\%$ relate to the factory and the rest to selling and administration.

h$)$ The actual sales revenue for the year was $$2,600,000($all credit sales$).$

i$)$The unadjusted cost of goods sold for the current year was $$1,600,000$

j$)$Manufacturing overhead was applied to production based on machine hours. Due to greater than expected demand for finished products, the company worked $30,000$ machine$-$hours during the year.

$3$Other information:

i$.$The corporate income tax rate is $25\%.$

ii$.$The predetermined overhead application rate has remained the same for the past two years. The direct labour rate of $$25$ per hour has also remained the same for the past two years.

iii.Direct materials of $$32,600,460$ actual direct labour hours and $600$ actual machine hours had been incurred for the ending work in process on December $31,2020.$

REQUIRED: $1.$ Calculate the predetermined manufacturing overhead rate and the total MOH applied to all jobs $(2$ marks$)$

$2.$ Calculate the specific costs $($direct materials, direct labour AND applied manufacturing overhead$)$ comprising the ending work in process inventory. $(2$ marks$)$

$3.$ Record $2020$ transactions $($including the opening and closing balances$)$ in the following $"$T$"$ accounts $(15$ marks$)$ a$)$ Raw Materials $(3$ marks$)$ b$)$ Work in process $(3$ marks$)$ c$)$ Finished Goods $(2$ marks$)$ d$)$ Manufacturing Overhead $(3$ marks$)$ e$)$ Cost of Goods Sold $(1$ mark$)$ f$)$ Sales $(1$ mark$)$ g$)$ Operating expenses $(2$ marks$)$

$4.$ Prepare the journal entry to close any under or over applied overhead assuming the company follows International Accounting Standard $2.$ Post the entry to the respective T$-$Accounts and calculate the adjusted ending balances for the accounts affected $(6$ marks$)$

$5.$ Prepare a schedule of cost of goods manufactured for the year ended December $31,2020$ assuming the company has posted the journal entry in #$4$ above. $(9$ marks$)6.$ Prepare an income statement for the year ended December $31,2020$ assuming the company has posted the journal entry in #$4$ above. $(8$ marks$)$