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 $85,000 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: During the year, the following transactions were completed: a. Raw materials purchased on account, $165,000. b. Raw materials used in production, $144,000 (materials costing $120,000 were charged directly to jobs, the remaining materials were indirect) c. Costs for employee services were incurred as follows: d. Rent for the year was $18,700 ( $13,100 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Utitity costs incurred in the factory, $15,000 f. Advertising costs incurred, $15,000 9. Depreciation recorded on equipment, $24,000. ( $16,000 of this amount related to equipment used in factory operations; the remaining $8,000 related to equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, $ ? L. Goods that had cost $229,000 to manufacture according to their job cost sheets were completed. J. Sales for the year (all paid in cash) totaled $511,000. The total cost to manufacture these goods according to their job cost sheets was $215,000. 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 avallable in the journal entries and T-accounts you have prepared. 38 Prepare a journal entry to close any balance in the Manufacturing Overhead account to cost of Gocds Sold. 4. Prepare an income statement for the year. Al of the information needed for the income statement is avalable in the joumal entries and Traccounts you have prepared. Complete this question by entering your answers in the tabs below. Prepare joumal entries to record the tuansactions for the year, (if no entry is required for a transiction/event, seiect "No journal entry required" in the first account fodld. Do not round intemmediate colculations.) Journal entry worksheet 1. Pepare journal entries to record the fransacions tor the year 2. Prepare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sosd. Post relevant dota from your journal entries to these T-accounts (dont forget to enter the beginning balances in your imventory accounts) 3A is Manufacturing Overhead underapplied or overopplied for the year? 3B Prepare a joumal entry to ciose any balance in the Manufacturing Overheod account to Cost of Goods Sold: 4. Prepare an income stotement for the year. All of the information needed for the income statement is avoloble in the joumal entries and Taccounts you have prepared. Complete this question by entering your answers in the tabs below. Prepare T-accounts for each imventory account, Manufacturing overhead, and Cost of Goods Sold. Post relevent dota front your journal entries to these T-accounts (don't forget to enter the beginning balances in your inventory accounts). (Do not round intermediate calculatons.) 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 Soid. 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 dose 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 avallable in the journal entries and T-accounts you have prepared. Complete this question by entering your answers in the tabs below. Is Manufacturing overhead underapplied or overapplied 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? 38. 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. Prepare a journal entry to dose any balance in the Manufacturing overhead account to Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Woteni Enter debits tefore undits. 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 Manufocturing 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. 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.)