Prepare a schedule for costs of goods sold and costs of goods sold manufactured.
Gold Nest Company, 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 hours worked. Its predetermined overhead rate is based on a cost formula that estimated $330,000 of manufacturing overhead for an estimated activity level of 1,500 direct labor hours, or $220 per direct labor hour. At the beginning of the year, the inventory balances were as follows: Raw Materials $ 25,000 Work in Process $10,000 Finished Goods $ 40,000 During the year, the following transactions were completed: Raw Materials purchased for cash. $275,000. Raw Materials used in production, $280,000 (materials costing $220,000 were charged directly to jobs, the remaining were indirect). Raw Materials ending inventory balance, $20,000. Cash paid to employees as follows: Direct Labor (1.350 hours) $180,000 Indirect Labor $72,000 Sales Commissions 563,000 Administrative salaries 590,000 Cash paid for rent during the year was $18.000 ($13,000 of this amount related to factory operations, and $5,000 related to selling and administrative activities). . Cash paid for utility costs in the factory, 557.000. - Cash paid for advertising $140,000. Depreciation recorded on equipment $100,000 (588,000 of this amount related to equipment used in factory operations: the remaining $12.000 related to equipment used in selling and administrative activities). Manufacturing overhead costs was applied to lobs. S TOUT TEXTESIVE THE WORK USTRE VETKOS WIoTecere COTITISSIDIS O Ses. The company Use order tosun system in which overhead is applied to jobs on the basis of direct labor hours worked. Its predetermined overhead rate is based on a cost formula that estimated $330,000 of manufacturing overhead for an estimated activity level of 1,500 direct labor hours, or $220 per direct labor hour. At the beginning of the year, the inventory balances were as follows: Raw Materials $ 25,000 Work in Process $ 10,000 Finished Goods $ 40,000 During the year, the following transactions were completed: Raw Materials purchased for cash $275,000. Raw Materials used in production, $280,000 (materials costing $220,000 were charged directly to jobs, the remaining were indirect). Raw Materials ending inventory balance, $20,000. Cash paid to employees as follows: Direct Labor (1.350 hours) $180,000 Indirect Labor $72.000 Sales Commissions 563,000 Administrative salaries 590,000 Cash paid for rent during the year was 515.000 (513,000 of this amount related to factory operations, and 55.000 related to selling and administrative activities). Cash paid for utility costs in the factory, 557.000. Cash paid for advertising $140.000 Depreciation recorded on equipment. 5100.000 (583.000 of this amount related to equipment used in factory operations the remaining 512.000 related to equipment used in selling and administrative activities Manufacturing overhead costs was applied to jobs. 5 Goods that had costs 5675.000 to manufacture according to the job cost sheets were completed Sales for the year paid in cash totaled 51.250.000. The total cost to manufacture there toods according to their job cost sheets was 5700.000
