B ezto.mheducation.com C M Question 4 . on. a Quiz - Connect Ch, 3 Quiz 0 Saved Help Save& Exit Submit 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. The company uses ajob-order costing system in which overhead is applied tojobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $92,000 of manufacturing overhead for an estimated activity level of $40,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: 833 poms Raw materials 35 10, 500 Work in process $ 4, 700 Finished goods 3% a, 000 BER During the year, the following transactions were completed: e 00 . Raw materials purchased on account, $166,000. Raw materials used in production, $149,000 (materials costing $128,000 were charged directly to jobs; the remaining materials were indirect). c. Costs for employee services were incurred as follows: p'm Direct labor $ 169,000 Indirect labor $ 312,800 Sales commissions $ 22,000 Administrative salaries $ 43,000 d. Rent for the year was $18,800 ($13,900 of this amount related to factory operations, and the remainder related to selling and administrative activities). Utility costs incurred in the factory, $11,000. Advertising costs incurred, $14,000. Depreciation recorded on equipment, $23,000. ($16,000 of this amount related to equipment used in factory operations; the remaining $7,000 related to equipment used in selling and administrative activities.) Manufacturing overhead cost was applied tojobs, $ ? . Goods that had cost $230,000 to manufacture according to theirjob cost sheets were completed. Sales for the year (all paid in cash) totaled $518,000, The total cost to manufacture these goods according to theirjob cost sheets was $219,000. ',-,-'.3' 59,qu % Raw materials purchased on account, $166,000. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Mc Graw Hill eztolmheducationcom M Question 4 - Ch. 3 Quiz - Connect Ch' 3 Quiz 0 Saved Help Save& Exit Submit 4 Req 1 Req 2 Req 3A Req 3B Req 4 Prepare T-accounts for each inventory account, 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). (Do not round intermediate calculations.) 833 points Ending Balance Beginning Balance Ending Balance Ending Balance Beginning Balance Ending Balance B ezto.mheducation.com C M Question 4 . on. a Quiz - Connect Ch. 3 Quiz 0 Saved Help Save& Exit Submit 9. Depreciation recorded on equipment, $23,000. ($16,000 ofthis amount related to equipment used in factory operations; the remaining $7,000 related to equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied tojobs, $ ? . i, Goods that had cost $230,000 to manufacture according to theirjob cost sheets were completed. j, Sales for the year (all paid in cash) totaled $518,000, The total cost to manufacture these goods according to theirjob cost sheets was $219,000. 3335 Required: 1. Prepare journal entries to record the transactions for the year, 2, Prepare T-accounts for each inventory account, 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). a 3A. Is Manufacturing Overhead underapplied or overapplied for the year? eBook 33. Prepare ajournal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. 4. Prepare an income statement for the year All ofthe information needed for the income statement is available in thejournal entries and Taccounts you have prepared. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 33 Req 4 Is Manufacturing Overhead underapplied or overapplied for the year? OUnderapplied OOverapplied % Record the entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Note: Enter debits before credits. Transaction General Joumal Debit Credit Record entry Clear entry View general journal Next ) a Mc Graw Hill