iPad 9:36 PM of Goods Sold. Prepare a schedule of cost of goods sold. 5. 6. Prepare an income statement for the year Job 412 was one of the many jobs started and completed during the year. The job required $8,000 in direct materials and 39 hours of direct labor time at a total direct labor cost of $9,200 The job contained only four units. If the company bills at a price 60% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer? PROBLEM 3-27 Comprehensive Problem [L03-1, Lo3-2, LO P 3-4,LO3-5, LO3-7 Gold Nest Company of Guandong. China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. All of the company's transactions with custom- ers, employees, and suppliers are conducted in cash: there is no credit. The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $330,000 of manufacturing overhead for an estimated activity level of $200,000 direct labor dol- lars. At the beginning of the year, the inventory balances were as follows: Raw materials.. .. -.--.... - Work in process Finished goods . $25,000 $10,000 ....$40,000 During the year, the following transactions were completed a. Raw materials purchased for cash, $275,000 b Raw materials requisitioned for use in production, $280,000 (materials costing $220,000 were charged directly to jobs; the remaining materials were indirect). Costs for employee services were incurred as follows: e. Direct labor. Indirect labor Sales commissions Administrative salaries $180,000 $72,000 $63,000 $90,000 d. Rent for the year was $18,000 ($13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Utility costs incurred in the factory, $57,000 f. Advertising costs incurred, $140,000 g. Depreciation recorded on equipment, S100,000. (588,000 of this amount was on equipment used in factory operations; the remaining $12.000 was on equipment used in selling and administrative activities.) Manufacturing overhead cost was applied to jobs, S i. Goods that had cost $675,000 to manufacture according to their job cost sheets were completed . Sales for the year totaled $1,250,000. The total cost to manufacture these goods according to their job cost sheets was $700,000 Required: 1. Prepare journal entries to record the transactions for the year 2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don't forget to enter the beginning balances in your inventory accounts). Compate an ending balance in each account Is Manufacturing Overhead underapplied or overapplied for the year? Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold 3. 4. Prepare an income statement for the year. (Do not prepare a schedule of cost of goods manu- factured; all of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.)
