Gold Nest Company of Guandong, China, is a family owned enterprise that makes birdcages for the South China market. The company sells its budcages through an extensive network of street vendors who receive commissions on their sales The company uses a job order casting 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 $84000 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: Finished During the year, the following transactions were completed a Raw material purchased on account $ 165,000 b. Raw materials used in production, $144.000 materials costing $129.000 were charged directly to jobs, the remaining materials were indirect) Costs for employee services were incurred as follows tracta . d. Rent for the year was $18.700 (513.300 of this amount related to factory operations, and the remainder related to selling and e l costs incurred in the factory $12000 Advertising costs incurred, $11000 Depreciation recorded on equipment. $23.000 15.000 of this amount related to equipment used in factory operations the remaining 57000 related to equipment used in selling and administrative activities) A Record the manufacturing overhead cost applied to jobs. Goods that had cost $223.000 to manufacture according to their job cost shoots were completed Sales for the year and in c o ld 5 000 The cost tomatcure these goods according to the cost sheets 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). 3A. Is Manufacturing Overhead underapplied or overapplied for the year? 38. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. 4. Prepare an income statement for the year. All of the information needed for the income statement is available in the journal entries and T-accounts you have prepared