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 on extensive network of street vendors who receive commissions on their soles.

The compony uses a job$-$order costing system in which overhesd is opplied to jobs on the bssis of direct labor cost. Its predetermined Overhesd rate is bosed on a cost formula thst estimsted $$84,000$ of manufacturing overhesd for an estimated activity level of $$40,000$ clirect labor dollars. At the beginning of the yesr, the inventory balances were ss follows:

$\backslash$table$[[$Raw naterials,$$10,480$