UESTION TWO List and explain the similarities and important differences between Job-order and process costing. (5 Marks) Holly Manufacturing Company was started with issuance of ordinary shares for Sh. 8.0 million. It purchased Sh.5.0 million of raw materials and worked on three Job Orders during 2017 for which data follow. (Assume that all transactions are for cash unless otherwise indicated). Page 1 of 4 Factory overhead is applied using a predetermined of Sh 0.5 per direct labour shilling. Jobs 2&3 were completed during the period and Job 3 was sold for Sh. 4.5 million. Holly paid Sh, 200,000 for selling and administrative expenses. Actual factory overhead was Sh, 1,750,000. Required: (i) Record the preceding events in a horizontal statements model. In the cash flow column, designate the cash flows as Operating Activities (QA) Investing Activities (IA), or Financing Activities (FA). The first event for 2017 has been recorded as an example. (ii) Reconcile all Subsidiary accounts with their respective control accounts. (iii) Record the closing journal entry for over or underapplied manufacturing overhead assuming that the amount is insignificant. Also close revenue and expense accounts. (iv) Prepare the following reports for 2017: (a) A schedule of cost of goods manufactured and sold, (b) A statement of Comprehensive income. (c) A statement of financial position and (d) Statement of Cash flows