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Accounting EssayProblem 1 The Commonwealth Company uses a job-order cost dust and applies manufacturing bash cost to jobs using a predetermined overhead rate basedon the cost of materials used in production. At the beginning of the year, the following estimates were made as a basis for computing the predetermined overhead rate manufacturing overhead cost,$186,000 direct materials cost,$155,000.See more Is the Importance of being earnest a satiric play essayThe following transactions took place during the year (all purchases and services were acquired on account) a. b. c. d. sore materials purchased,$96,000. Raw materials requisitioned for use in production (all direct materials), $88,000. Utility bills incurred in the factory,$17,000. Costs for salaries and wages incurred as follows treat labor, $174,000 Indirect labor,$70,000 Selling and administrative salaries, $124,000 Maintenance costs incurred in the factory,$12,000. Advertising costs incurred,$98,000. Depreciation reco rd for the year, $75,000 (75% relates to factory assets and the remainder relates to selling and administrativeassets).Rental cost incurred on buildings, $80,000 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration). Miscellaneous selling and administrative costs incurred, $12,000. Manufacturing overhead cost was use to jobs. Cost of goods manufactured for theyear, $480,000. Sales for the year (all on account) totaled $900,000. These goods cost $550,000 to manufacturee. f. g. h. i. j. k. l. Requirements Prepare journal entries on the following page to record the information above.