Gold Nest Company of Guandong China, 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 that applies overhead to jobs based on 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 fabor dollars The beginning inventory balances were as follows During the year the following transactions were completed a Raw materials purchased on account, $166,000 b Raw materials used in production, $150,000 (materials costing $126,000 were charged directly to jobs, the remaining materials were indirect) c Cash paid to employees d Rent for the year was $18,700 ( $13,100 related to factory operations, and the remainder related to selling and administrative activities) e Utility costs incurred in the factory, $14,000 1 Advertising costs incurred, $15,000 9 Depreciation on equipment $24,000 ( $18,000 related to equipment used in factory operations the remaining $6,000 related to equipment used in selling and administrative activities) h Manufacturing overhead cost applied to jobs, $ I Completed goods cost $230,000 to manufacture is Sales for the year fall paid in cash) totaled $501,000, The manufacturing cost of these goods was $218,000 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 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 38 Prepare a journal entry to close Manufacturing Overhead to Cost of Goods Sold 4 Prepare an income statement All of the information needed for the income statement is avallable in the journal ent accounts you have prepared Is Manufacturing Overhead underapplied or overapplied

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Gold Nest Company of Guandong  China, 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 that applies overhead to jobs based on 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 fabor dollars  The beginning inventory balances were as follows During the year the following transactions were completed  a  Raw materials purchased on account, $166,000  b  Raw materials used in production, $150,000 (materials costing $126,000 were charged directly to jobs, the remaining materials were indirect) c  Cash paid to employees d  Rent for the year was $18,700 ( $13,100 related to factory operations, and the remainder related to selling and administrative activities) e  Utility costs incurred in the factory, $14,000 1  Advertising costs incurred, $15,000 9  Depreciation on equipment  $24,000 ( $18,000 related to equipment used in factory operations  the remaining $6,000 related to equipment used in selling and administrative activities) h  Manufacturing overhead cost applied to jobs, $   I  Completed goods cost  $230,000 to manufacture  is Sales for the year fall paid in cash) totaled $501,000, The manufacturing cost of these goods was $218,000  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 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  38  Prepare a journal entry to close Manufacturing Overhead to Cost of Goods Sold  4  Prepare an income statement  All of the information needed for the income statement is avallable in the journal ent accounts you have prepared  Is Manufacturing Overhead underapplied or overapplied

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Gold Nest Company of Guandong. China, makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors

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