Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi can someone check my work and see where I messed up. It said incomplete but can't figure out where I went wrong. thank you

Hi can someone check my work and see where I messed up. It said incomplete but can't figure out where I went wrong. thank you for your help

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

4 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 $103,500 of manufacturing overhead for an estimated activity level of $45,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: 10 points Raw materials Work in process Finished goods $10, SOO $ 4,600 $ 8,000 etlook During the year, the following transactions were completed. Print References a. Raw materials purchased on account. $ 161,000. b. Raw materials used in production, $143.000 (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 $ 199,000 $330.000 $ 30,000 $ 44,000 d. Rent for the year was $18.000 ($13,000 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 Advertising costs incurred. $15,000 9. Depreciation recorded on equipment, $23,000. ($17000 of this amount related to equipment used in factory operations: the remaining $6,000 related to equipment used in selling and administrative activities.) h. Record the manufacturing overhead cost applied to jobs 1. Goods that had cost $230,000 to manufacture according to their job cost sheets were completed j. Sales for the year (all paid in cash) totaled $516,000. 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. 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) erences d. Rent for the year was $18,000 ($13,000 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, $15,000. g. Depreciation recorded on equipment, $23,000. ($17,000 of this amount related to equipment used in factory operations, the remaining $6,000 related to equipment used in selling and administrative activities.) h. Record the manufacturing overhead cost applied to jobs. 1. Goods that had cost $230,000 to manufacture according to their job cost sheets were completed. j. Sales for the year (all paid in cash) totaled $516,000. 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 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 1 Reg 2 Req Req 3B Reg 4 Reg 1 Reg 2 Reg 3A Reg 38 Reg 4 Prepare journal entries to record the transactions for the year. (If no entry is required for a transacbon/event, select "No journal entry required" in the first account field. Do not found intermediate calculations. No Transaction General Journal Credit 1 Debit 161.000 a Raw materials 161 000 2 b Work in process Manufacturing overhead Raw materials 124 000 19.000 OO 143 000 3 C. 179.000 Work in process Manufacturing overhead Sales commisions expense Administrative salaries expense OSS 330,000 30.000 44.000 OOO 583,000 4 d Manufacturing overhead Rent expense 95 13 000 5.000 SIS 18,000 5 Manufacturing overhead $ 18,000 18.000 6 f. Advertising expense 15,000 15 000 7 g Manufacturing overhead Depreciation expense Accumulated depreciation 17 000 6.000 23.000 A Prev 4 of 5 HE Next Rent expense 5,000 18,000 5 e. Manufacturing overhead 18,000 18,000 6 f. Advertising expense > 15,000 15,000 7 > Manufacturing overhead Depreciation expense Accumulated depreciation 17,000 6,000 o 23,000 8 h. 411,700 Work in process Manufacturing overhead 411,700 9 i. Finished goods Work in process 230,000 230,000 10 (1). > Cash Sales 516,000 516,000 11 i(2) $ Cost of goods sold Finished goods 216,000 216,000 3 Rega Req 2 > Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg Req 3B Req 4 Prepare T-accounts for each inventory account, Manufacturing overhead, and cost of Goods Sold. Post relevant data from your jou 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 10,500 Beg Bal 4 600 161,000 b. 124 000 143,000 179,000 4.11.700 End. Bal. 28,500 230,000 End. Ba 489.300 a C! SOS h Manufacturing Overhead Beg Bal Beg. Bal > Finished Goods 8,000 230,000 216,000 d. 330.000 13.000 18,000 End. Bal 22,000 ODD SS 17/000 19.000 411,700 Cost of Goods Sold End. Ba 14 700 Beg Bal 216,000 End. Bal. 216,000 Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg Req 3B Reg 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.) Gold Nest Company Income Statement For the Year Ended s 516,000 >> 201,300 314,700 Sales Cost of goods sold Gross margin Selling and administrative expenses: Sales commissions Administrative salaries expense Rent expense Advertising expense Depreciation expense 30,000 44,000 5,000 15,000 6,000 100,000 214.700 Net operating income $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Expert Fraud Investigation A Step By Step Guide

Authors: Tracy Coenen

1st Edition

0470387963, 978-0470387962

More Books

Students also viewed these Accounting questions