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. All of the company's transactions with customers, employees, and suppliers are conducted in cash; there is no credit. 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 $140,000 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 $ 10,800 $ 4,900 $ 8,700 During the year, the following transactions were completed: a. Raw materials purchased for cash, $161,000. b. Raw materials requisitioned for use in production, $141,000 (materials costing 122,000 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 $ 161,000 $398,900 $ 28,000 $ 46,000 d. Rent for the year was $18,500 (S13,500 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Utility costs incurred in the factory, $18,000. f. Advertising costs incurred, $12,000. g. Depreciation recorded on equipment, $24,000. ($16,000 of this amount was on equipment used in factory operations, the remaining $8,000 was on equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, $? I Goods that had cost $226,000 to manufacture according to their job cost sheets were completed. j. Sales for the year totaled $519,000. The total cost to manufacture these goods according to their job cost sheets was $216,000. Required: 1. 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. Round your intermediate calculations to 2 decimal places.) Journal entry worksheet 1 2 3 3 4 5 6 7 8 11 Raw materials requisitioned for use in production, $141,000 (materials costing $122,000 were chargeable directly to jobs; the remaining materials were indirect). Note: Enter debits before credits. General Journal Debit Credit Transaction b. Record entry Clear entry View general journal Journal entry worksheet Sales for the year totaled $519,000. Note: Enter debits before credits. General Journal Debit Credit Transaction j(1). Record entry Clear entry View general journal 1 4 5 6 7 8 9 10 11 The total cost to manufacture these goods according to their job cost sheets was $216,000. Note: Enter debits before credits. General Journal Debit Credit Transaction (2) 2. Prepare t-accounts for inventories, 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). (Round your intermediate calculations to 2 decimal places.) Raw Materials Work in Process Beg. Bal. Beg. Bal. End. Bal 0 End. Bal Finished Goods Manufacturing Overhead Beg. Bal. End. Bal 0 End. Bal. Cost of Goods Sold End. Bal. 3-a. Is Manufacturing Overhead underapplied or overapplied for the year? Overapplied Underapplied 4. Prepare an income statement for the year. (Round your intermediate calculations to 2 decimal places.) Gold Nest Company Income Statement For the Year Ended $ 0 Selling and administrative expenses 0 $ $ 0