QUESTION 1 The GO-Magic company uses job-order costing system. The following data relate to the first quarter of the company's fiscal year a. Materials purchased on credit $195,000 b. Materials issued from store room to production $175,000 (55% direct materials and 25% indirect materials). c. Utility costs incurred in the factory $19,000 d. Cost of employee salaries a. Direct Labour $65,000 b. Indirect cost and support workers in the factory $25,000 C. Marketing salaries $65,000 e. Advertising cost incurred = $94,000 f. Prepaid insurance expired during the quarter , $75,000.[ the ratio of insurance production to admin insurance = 4: 1] g. Rental cost = $36,000 ( selling cost consists of 25% of the total rental cost] h. Company applies manufacturing overhead based on machine hours . Budgeted overhead cost =$200,000 and Estimated machine hours = 42000 hours. Actual machine hours worked = 45,000 hours. Calculate the PR and journalize the applied cost i. Goods costing to produce =$1,400,000 were completed during the quarter Sales on credit = $3,000,000. REQUIRED 1. Prepare Journal entries for the quarter 2.Calculate the total product cost 3. Is overhead cost under-applied or over-applied? What adjustment should be made to correct the cost of goods account