Problem 3-16 Comprehensive Problem [LO3-1, LO3-2, LO3-4] Gold Nest Company of Guandong, China, is a sells its birdcages through an extensive network of street vendors who receive commissions on their sales. The company uses a job order costing syste in which overhela is applied to jobs on the basis of direct labor cost ts on account, $ 168.000 b Raw n $144.000 (materials costing $130,000 were charged directly to jobs; the remaining materials used in er 3 Pr Direct labor Indirect labor $ 29,000 $ 42,000 d Rent for the year was $18,200 ($13,400 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Utility costs t. Advertising costs incurred, $13,000. g. Depreciation recorded on equipment, $22,000. ($17.000 of this amount related to equipment used in factory operations; the ts incurred in the factory, $13,000 remaining $5,000 related to equipment used in selling and administrative activities) Manufacturing overhead cost was applied to jobs, $ ? L Goods that had cost $225,000 to manufacture according to their job cost sheets were completed. J Sales for the year (all paid in cash) totaled $513,000. The total cost to manufacture these goods according to their job cost sheets was $218,000 ired 1. Prepare journal entries to record the transactions for the year 2. Prepare T-a journal entries to these T-accounts (don't forget to enter the beginning balances in your inventory accounts) 3A. Is Manufacturing Overhead underapplied or overapplied for the year? 3B. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold 4. Prepare an income statement for the year. All of the information needed for the income statement is available in the journal entries nts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your Prev 1of1 Next