M N 0 2 R S T U V w X A B D E G H 1 1 PROBLEM 3-27 Comprehensive Problem (L03-1. L03-2, L03-4, LO3-5, L03-7] 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 All of the company's transactions with customers, employees, and suppliers are conducted in cash: there is no credit 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 $330,000 of manufacturing overhead for an estimated activity level of $200.000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: 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, 557,000. f Advertising costs incurred, $140,000 g. Depreciation recorded on equipment. $100,000 ($88 000 of this amount was on equipment used in factory operations, the remaining $12,000 was on equipment used in selling and administrative activities) h. Manufacturing overhead cost was applied to jobs, $_2 Goods that had cost $675,000 to manufacture according to their job cost sheets were completed J. Sales for the year totaled $1,250,000. The total cost to manufacture these goods according to their job cost sheets was $700 000 Raw materials Work in process Finished goods $25,000 $10,000 $40,000 Week 3 Homework Student (2) Excel Search Draw Page Layout Formulas Data Review View Help Share Comments AutoSave CH File Home Insert IT X Calibri m Paste BIU = == General ILX - 11 AA A A 25 Wrap Text Merge & Center 47 OM E = = = Insert Delete Format $% % ITI Conditional Formatas Cel Formatting Table Styles Styles 4 00 0 0 Sort & Find & Filter Select Editing 10 Analyze Dats Analysis Clipboard 5 Font FS Alignment Number F Cells Y41 1 M N O R S T U w X Y Raw Materials WIPN FG* COGS B C D E F G H 20 21 2 22 73 4 During the year, the following transactions were completed 5 a Raw materials purchased for cash, $275,000 6 D. Raw materials requisitioned for use in production, $280.000 (materials 27 costing $220 000 were charged directly to jobs the remaining materials 28 were indirect ) 9 c Costs for employee services were incurred as follows: 90 11 Direct labor $180,000 2 Indirect labor $72,000 23 Sales commissions $63,000 24 Administrative salaries......... $90,000 15 6 17 sa 9 Directions: use given to fill in the t-accounts. Then, close any over/under applied to OH. 20 Prepare an income statement. 31 Assistance Tab 1 Tab 2 Tab 3 Tab 4 Tab 5 Tab 6 Tab 7 Tab 8 7 B MOH Income Statement