III Instructions This assignment involves using debits and credits to record the flow of costs under the Job Order Costing system. Each transaction will be recording the accumulation and movement of product costs as the product is being produced. A. The first part of the assignment requires you to identify the appropriate account and amount of debit or credit B. The second part of the assignment requires you to complete a contribution format income statement using the adjusted balances after posting the transactions from Part A. 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 $85,500 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: Raw materials Work in process Finished goods $10,400 $ 4,500 $ 8,400 Record the required journal entries related to each of the following transactions that were completed during the year. Indirect Labor Sales Commissions Expense Indirect Materials Rent Expense Raw Materials Utilities Expense Work in Process Advertising Expense Finished Goods Depreciation Expense Manufacturing Overhead Accumulated Depreciation Cash Cost of Goods Sold Sales Salaries Expense III Instructions This assignment involves using debits and credits to record the flow of costs under the Job Order Costing system. Each transaction will be recording the accumulation and movement of product costs as the product is being produced. A. The first part of the assignment requires you to identify the appropriate account and amount of debit or credit B. The second part of the assignment requires you to complete a contribution format income statement using the adjusted balances after posting the transactions from Part A. 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 $85,500 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: Raw materials Work in process Finished goods $10,400 $ 4,500 $ 8,400 Record the required journal entries related to each of the following transactions that were completed during the year. Indirect Labor Sales Commissions Expense Indirect Materials Rent Expense Raw Materials Utilities Expense Work in Process Advertising Expense Finished Goods Depreciation Expense Manufacturing Overhead Accumulated Depreciation Cash Cost of Goods Sold Sales Salaries Expense
