PROBLEM 3-16 Comprehensive Problem Gold Nert Compuny of Guandont. Chins, is a famifyouped eaterprise that mabes birdouzs for the South China marbet The company sells its birdcages throegh an ectengive network of street vendors who receive commistions on ther tales The company utes a joborder corting wstem in which orthead is applied to jobs on the basir of direct laber cort its predetermined overbead rate is based on a cost formala that ertimated $330,000 of manufacturing overbeud for an ertimated activity level of $200,000 direct labor dollars. At the begineing of the year, the inveatory balances were as followk During the jear, the following transactions were completed 2. Raw materials purchased on account, $275,000. b. Rew materials used in production, $280,000 (materials costing $220,000 ere charged directly to jobs, the remaining materials were indirect). c. Corts for emplosee services were incurred as follow: d. Reat 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, $57,000. f. Advertising costs incurred, $140,000. 2. Depreciation recorded on equipment, $100,000. ( $88,000 of this amount related to equigement used in factory operations, the remainit $12,000 related to equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, 5 ?. i. Goods that had cost $675,000 to manufacture according to their job cost sheets were completad. j. Sales for the year (all paid in cash) totaled $1,250,000. The total cort to manufacture these goods according to their job cost sheets wr $700,000