gold nest company of guandong, china is a family owned

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. A of the company's transactions with austomers, employees, and suppliers are conducted in cash, there is no aedt The company uses a job order costing system in which overhead is applied to obs on the basis of direct labor cost lts predetermined overhead rate is based on a cost formula that estimated $103,500 of manufacturing overhead for an estimated activity level of SA5,000 direct labor dollars. At the beginning of the year, the inventory balances were as folows: Raw materials 10,800 Work in process 4,500 Finished goods 8,900 During the year, the folowing transactions were completed a. Raw materials purchased for cash, $161,000. b, Raw materials requisitioned for use in production, $142.000 (materiais costing S124,000 were charged directly to jobs, the remaining materials were indirect). c. Costs for employee services were incurred as foliows: 154,000 Direct labor Indirect labor 275,700 28,000 Sales commissions 48,000 Administrative salaries d. Rent for the year was$18 700 ($13,500 of this amount related to factory operations, and the remainder related to selling and administrative activities) e. Utility costs incurred in the factory, $16 000. Advertising costs incurred, S14,000. g Depreciation recorded on equipment, S24,000. (S17,000 of this amount was on equipment used in factory operations, the remaining $7,000 was on equipment used in selling and administrative activities.) h Manufacturing overhead cost was appied to jobs, S2 L Goods that had cost $229,000 to manufacture according to their job cost sheets were completed. j Sales for the year totaled $518.000. The total cost to manufacture these goods according to their job cost sheets was