Managerial Accounting Problem. problem provided below in a screenshot. Thanks.
Chapter Three Problems (5 pts.) 0 Saved Help 5 points eBook Print References Mc Graw Hill Education Problem 3-16 Comprehensive Problem [L03-1, LO3-2, LO3-4] Gold Nest Company of Guandong, China, is a familyowned 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 ajob-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 $94,500 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 $10,800 Work in process 5 4,700 Finished goods 5 5,100 [ During the year, the following transactions were completed: a. Raw materials purchased on account, $ 169,000. b. Raw materials used in production, $146,000 (materials costing $129,000 were charged directly to jobs; the remaining materials were indirect). c. Costs for employee services were incurred as follows: Direct labor 5 178,000 Indirect labor 5 296,700 Sales commissions $ 29,000 Administrative salaries $ 44,000 d. Rent for the year was $18,700 ($13,400 of this amount related to factory operations, and the remainder related to selling and 2 Raw materials used in production, $146,000 (materials costing $129,000 were charged directly to jobs; the remaining materials were indirect). 3 Cost for employee services incurred as follows: Direct labor $178,000 Indirect labor $296,700 Sales commissions $29,000 Administrative salaries $44,000 Credit 4 Rent for during the year was $18,700 ($13,400 of this amount related to factory operations, and the remainder 169,000 related to selling and administrative activities). 5 Utility cost incurred in the factory, $17,000. Note : = journal entry has been entered Record entry Clear entry View general journal Mc Graw Hill EducationChapter Three Problems (5 pts.) 0 Saved Help Save & Exit Submit Check my work Req 1 Req 2 Req 3A Req 33 Req 4 5 Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry points required" in the rst account eld. Do not round intermediate calculations.) eBook Print References 4 Rent for during the year was $18,700 ($13,400 of this I . . . . 11 > amount related to factory operations, and the remainder related to selling and administrative activities). \\ 5 Utility cost incurred in the factory, $17,000. \\ 6 Advertising cost incurred, $14,000. 7 Depreciation recorded on equipment, $25,000. ($ 16,000 I. of this amount related to equipment used in factory operations; the remaining $ 9,000 related to equipment used in selling and administrative activities.) 1691000 8 Record the manufacturing overhead cost applied to jobs. I' n Inn-.4. nus L.-A W... (anon nnn 'A w". Note : . = journal entry has been entered Record entry clear entry View general journal Mc gmw EducationChapter Three Problems (5 pts.) i Saved Help Save & Exit Submit Check my work 2 Req 1 Req 2 Req 3A Req 3B Reg 4 Prepare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these 5 T-accounts (don't forget to enter the beginning balances in your inventory accounts). (Do not round intermediate calculations.) points Raw Materials Work in Process Beg. Bal. Beg. Bal. eBook Print References End. Bal. End. Bal. Finished Goods Manufacturing Overhead Beg. Bal Beg. Bal. End. Bal. Cost of Goods Sold End. Bal. Beg. Bal. End. Bal Mc Graw Hill EducationChapter Three Problems (5 pts.) i Saved Help Save & Exit Submit Check my work 2 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Reg 4 5 points 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.) eBook Gold Nest Company Print Income Statement For the Year Ended References 0 Selling and administrative expenses: 0 $ 0 Mc Graw Hill Education
