jountal entry all 11 transactions
Problem 3-16 (Algo) Comprehensive Problem [LO3-1, LO3-2, LO3-4] Gold Nest Company of Guandong, China, is a family-owned enterprise that mokes 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. lis predetermined overhead rate is bosed on a cost formula thot 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, $164,000. b. Raw materials used in production, $146,000 (materials costing $121,000 were charged directly to jobs, the remaining materials were indirect). c. Costs for employee services were incurred as follows: d. Rent for the year wos $18,400($13,100 of this amount reloted to toctory operations, ond the remainder related to selling and administrative octivities). e. Utility costs incurred in the factory. $19,000. 1. Advertising costs incurred, $10,000. 9. Depreciation recorded on equipment, $24,000,1$17,000 of this amount related to equipment used in factory operations, the remaining $7,000 related to equipment used in selling ond administrative activities ). h. Monufocturing overhead cost wos applied to jobs. $. 1. Goods that had cost $227,000 to monufacture according to their job cost sheets were completed 1. Soles for the yeor (all paid in cash) totaled $517,000. The total cost to monufacture these goods nccording to their job cost sheets was $218,000 Required: 1. Prepare joumal entries to record the transactions for the year. 2. Prepare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold Post retevant dato from your fournalentries 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 joumal entry to close any balance in the Manufacturing Overhead occount 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. and toccounts you have prepared. Complete this question by entering your answers in the tabs below. Prepare T-acoounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts forget to enter the beginning balances in your inventory accounts). (Do not round intermediate calculations.) 3. Rent for the year wos $18,400($13,100 of this amount related to foctory operations, and the remainder related to selling and odministrative activities). e. Utility costs incurred in the factory, $19.000. 1. Advertising costs incurted, $10,000. 9. Depreciation recorded on equipment, $24,000. $17,000 of this amount related to equipment used in factory operations, the remaining $7,000 related to equipment used in selling and odministrative octivities) h. Manufacturing overheod cost was applied to jobs, $ ? 1. Goods that had cost $227,000 to manufacture occording to their job cost sheets were completed. 1. Sales for the year (all paid in cosh) totaled $517,000. The totol cost to manufocture these goods according to their job cost sheets wos $218,000 Required: 1. Prepare journal entries to record the transactions for the year. 2. Prepare T-accounts for each inventery account, Monufacturing Overhead, and Cost of Goods Sold. Post relevant data from your joumal entries to these T-accounts (don't forget to enter the beginning balonces in your inventory accounts) 3A. Is Manufacturing Ovechead underapplied or overapplied for the year? 38. Prepare a journal entry to close any bolance in the Monufocturing Overhead account to Cost of Goods Sold. 4. Prepare on income statement for the year. All of the information needed for the income stotement is availabie in the journol entries and T-accounts you have prepared Complete this question by entering your answers in the tabs below. Ls Manufacturing Overhead underapplied or overapplied for the year? Prepare a journal entry to close any balance in the Manufacturing Overhead account to cost of Goods 501 . (if no entry is required for a transaction/event, select "No journal entry required" in the first accotnt field.) Journal entry worksheet Record the entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Hotel Enter debits belere credits. joumbil entries to these Taccounts (don't forget to enter the beginning balances in your inventory accounts). 3A. Is Monufacturing Overhead underapplied or overapplied for the year? 3B. Prepare a joumal 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 avallable in the joumal 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.)
