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 $75,000 of manufacturing overhead for an estimated activity level of $50,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: Raw materials Work in process Finished goods $10,100 $ 4,600 $ 8,200 During the year, the following transactions were completed: a. Raw materials purchased on account $169,000 b. Raw materials used in production, $144,000 (materials costing $124,000 were charged directly to jobs, the remaining materials were indirect). c. Costs for employee services were incurred as follows: Direct labor Indirect labor Sales commissions Administrative salaries 5171,000 $ 176,700 $ 21,000 $ 45,000 d. Rent for the year was $18.200 ($13,700 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Utility costs incurred in the factory, $14,000, f. Advertising costs incurred, $14,000. g. Depreciation recorded on equipment, $22,000. ($18,000 of this amount related to equipment used in factory operations; the remaining $4,000 related to equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, $_? I Goods that had cost $228,000 to manufacture according to their job cost sheets were completed Color for the year fall paid in cash) totaled $515,000. The total cost to manufacture these goods according to their job cost sheets OL c. Costs for employee services were incurred as follows: Direct labor Indirect labor Sales comissions Administrative salaries $ 171,000 $ 176,700 $ 21,000 $ 45,000 d. Rent for the year was $18,200 ($13,700 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Utility costs incurred in the factory, $14,000. f. Advertising costs incurred, $14,000. g. Depreciation recorded on equipment, $22,000. ($18,000 of this amount related to equipment used in factory operations; the remaining $4,000 related to equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, $_? 1. Goods that had cost $228,000 to manufacture according to their job cost sheets were completed. J. Sales for the year (all paid in cash) totaled $515,000. The total cost to manufacture these goods according to their job cost sheets was $217,000. 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? 3B. 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. Complete this question by entering your answers in the tabs below. Reg 4 Reg 1 Reg 2 Reg 3B Req for the year (If no entry is required for a transaction/event, select "No journal entry the tabs below. Req 1 Req 2 Reg 3A Reg 38 Req 4 Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations.) View transaction ist Journal entry worksheet 1 2 3 4 5 6 7 8 8 ..... 11 Raw materials purchased on account, $169,000. Note: Enter debits before credits Transaction General Journal Debit Credit View general Journal Record entry Clear entry Reg 2 > -k Req 1 Reg 2 Reg 3A Req 3B Reg 4 Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations.) + View transaction list nces Journal entry worksheet Reg 1 Reg 2 Req 3A Req 3B Req 4 Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 2 4 5 6 7 8 11 Cost for employee services incurred as follows: Direct labor $171,000 Indirect labor $176,700 Sales commissions $21,000 Administrative salaries $45,000 Note: Enter debits before credits. Transaction General Journal Debit Credit View general Journal Clear entry Record entry Rec Reg 2 > Reg 1 Req 2 Req 3A Req 3B Reg 4 Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round Intermediate calculations.) View transaction list 25 Journal entry worksheet Req 1 Reg 2 Reg 3A Reg 36 Reg 4 Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet Req 1 Reg 2 Req 3A Reg 3B Reg 4 Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet Req 1 Reg 2 Reg 3 Req 38 Reg 4 Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 38 Req 4 Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 1 5 6 4 7 8 9 R. 11 Goods that had cost $228,000 to manufacture according to their job cost sheets were completed. Note: Enter debits before credits Debit General Journal Transaction Credit View general Journal Clear entry Record entry Reg1 Reg 2 > Reg 1 Reg 2 Req Req 3B Req 4 Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 36 Reg 4 Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet eu le yedi. Alle vormation needed for the income statement is available in the journal entries and T-accounts you have prepared. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 38 Reg 4 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). (Do not round intermediate calculations.) Raw Materials Work in Process Beg. Bal Bog. Bal es End. Bal End. Bal Manufacturing Overhead Finished Goods Beg. Bat. Beg Bal End Bal End. Bal Cost of Goods Sold Beg Bal End. Bal Req3A >