Gold Nest Company of Guandong, China, sa family owned enterprise that makes birdcages for the South Chia market. The company sels is cages 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 tate based on a cost formulated 66.000 of manufacturing overhead for an estimated activity level of $40,000 Oneci labor dollars. At the beginning of the year, the inventory balances were as follows waterials $ 10, work in process $ Tinished Dua the year, the following transactions were completed a Raw manas purchased on account 5466.000 baw materials production 550.000 manals conting $123.000 were charged directly to jobs their materia werende t. Costs for employees were cred as follows . . 1. 3, Wii dow the year 1838 th cened to factory operation, and the remainder related to sing and advies Uw costs in the try 000 News S600 Depreciation recorded 14000 15.000 other related to woment used in factory operations the monelling and admites) Mango Goods that 5225000 gojo cost wheels were completed Ses for the best med 4000 The toto manufacture these 0000 according to the botte was 12000 Hege 2 Taco Manufactured and cost to avantum welcome the balance in twentory coun) Owed for the year 36. Mang Occount Cost of Goods redde for me come with pare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant gata Ori you juurem on't forget to enter the beginning balances in your inventory accounts). (Do not round intermediate calculations.) Raw Materials Work in Process Debit Credit Debit Credit eginning BMance Beginning Balance Ending Balance Ending Balance Finished Goods Manufacturing Overhead Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Cost of Goods Sold Ending Balance Credit Dets Beginning Balance Ending Balance Req ? 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 $68,000 of manufacturing overhead for an estimated activity level of $40,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: Raw materials $ 10,800 Work in process $ 4,500 Finished goods $ 8,000 During the year, the following transactions were completed: a. Raw materials purchased on account, $166.000. b. Raw materials used in production, $143,000 (materials costing $123,000 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 $ 177,000 $ 218,900 $ 23,000 $ 42,000 d. Rent for the year was $18,100 (513,300 of this amount related to factory operations, and the remainder related to selling and administrative activities), e Utility costs incurred in the factory, $19,000 f. Advertising costs incurred, $14,000. g. Depreciation recorded on equipment . $24,000. ($15,000 of this amount related to equipment used in factory operations, the remaining $9,000 related to equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, $_? 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 $504,000. 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? 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.)