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 5105,000 of manufacturing overhead for an estimated activity level of $50,000 direct abor dollars. At the beginning of the year, the inventory balances were as follows: Raw materials Work in process Finished goods 5 10,600 $4,700 58,400 During the year, the following transactions were completed: a. Raw materials purchased on account. $163,000 b. Raw materials used in production, 5146.000 (materials costing 5128,000 were charged directly to jobs the remaining materials were indirect c Costs for employee services were incurred as follows: Direct labor Indirect labor Sales Coniston istrative salaries $164,000 $262.00 $21.000 $ 50.000 Che Advertising costs incurred on account, 146,000. 9. Depreciation was recorded for the year, 582,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account. S107000 (80% related to factory facilities, and the remainder related to selling and administrative facilities) 1. Manufacturing overhead cost was applied to jobs, S_ 1. Cost of goods manufactured for the year, 5870,000 k Sales for the year (all on account) totaled $1700,000. These goods cost $900.000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were Raw Materials Work in Process Finished Goods $ 40,000 $ 31,000 $ 70,000 Required: 1. Prepare journal entries to record the preceding transactions 2. Post your entries to T-accounts (Don't forget to enter the beginning inventory balances above 3. Prepare a schedule of cost of goods manufactured 4A Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold 48. Prepare a schedule of cost of goods sold 5. Prepare an income statement for the year . Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Reg 5 Req 4B Reg 1 Reg 2 Req3 Req 4A Prepare a schedule of cost of goods sold. Froya Fabrikker AIS Schedule of Cost of Goods Sold Reg 1 Req 2 Reg 3 Req 4A Req 4B Req 5 Prepare an income statement for the year. Froya Fabrikker A/S Income Statement For the Year Ended 0 Selling and administrative expenses 0 $ 0 Reg 1 Req 2 Reg 3 Req 4A Req 4B Req 5 Prepare an income statement for the year. Froya Fabrikker A/S Income Statement For the Year Ended 0 Selling and administrative expenses 0 $ 0
