Gold Nest Company of Guandong. China, is a family-owned enterprise that makes birdcages for the South China market. The company sel its birdcages through an extensive network of street vendors who receive commissions on their sales. 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 dollars. At the beginning of the year, the inventory balances were as follow: During the yeat the followng undnsftibns werefcompleted indirecti. 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. 8. Depreciation recorded on equipment, $100,000. ( $88,000 of this amount related to equipment used in factory operations; the remaining $12,000 related to equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, $ ?. i. Goods that had cost $675,000 to manufacture according to their job cost sheets were completed. j. Sales for the year (all paid in cash) 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 trensactionts for the year. 2. Prepare T-accounts for each inventory account Manufacturife Overnead and Cost of Goods Sold. Post relevant data from your journal entries to these I-accounts (don't forget to enter the beginhing balances in rour inventory accounts). Compute an ending balance in each account. 3. Is Menufacturing Overhead underapplted of overapptied for the jeat Prepare a journal entry to close any balence in the Manufacturing Overhead account to Cost of Gopds Sold. 4. Prepare an income statement for the year. Do not prepare a schecule of cost of goods manufactured; all of the information needed for the income statement is gvailable in the jourali entuies and Teccounts you have prepared)