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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
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 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 $85,500 of manufacturing overhead for an estimated activity level of $45,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: Raw materials Work in process Finished goods $10,400 $ 4,500 $ 8,400 Record the required journal entries related to each of the following transactions that were completed during the year. Indirect Labor Indirect Materials Raw Materials Work in Process Finished Goods Manufacturing Overhead Cash Sales Salaries Expense Sales Commissions Expense Rent Expense Utilities Expense Advertising Expense Depreciation Expense Accumulated Depreciation Cost of Goods Sold
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