Raw materiais used in production, $144,000 (materials costing $122,000 were charged directly to jobs; the remaining materials were indirect). Note: Enter debits before credits. Depreciation recorded on equipment, $22,000. ( $15,000 of this amount related to equipment used in factory operations; the remaining $7,000 related to equipment used in selling and administrative activities.) Note: Enter debits before credits. Rent for during the year was $18,800 ( $13,300 of this amount related to factory operations, and the remainder related to selling and administrative activities). Note: Enter debits before credits. Goods that had cost $228,000 to manufacture according to their job cost sheets were completed. Note: Enter debits before credits. Note: Enter debits before credits: Cost for employee services incurred as follows: Direct labor $177,000 Indirect labor $254,600 Sales commissions $21,000 Administrative salaries $49,000 Note: Enter debits before credits. Sales for the year (all paid in cash) totaled $516,000. Note: Enter debits before credits. Record the manufacturing overhead cost applied to jobs Note: Enter debits before credits. Problem 3-16 (Algo) Comprehensive Problem [LO3-1, LO3-2, LO3-4] Gold Nest Company of Guandong. China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcoges 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 $85,500 of manufacturing overhead for on estimated activity level of $45,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: During the year, the followng transactions were completed: o. Row materials purchased on account, $167,000. b. Row materials used in production, $144,000 (materials costing $122,000 were charged directly to jobs, the remaining materiais were indirect). c. Costs for employee services were incurred os follows. d. Rent for the year was $18,800 ( $13,300 of this amount related to factory operations, and the remainder related to selling and administrative activities) e. Utility costs incurred in the factory, $17000. 1. Advertising costs incurred, $12,000 9. Depreciation recorded on equipment, $22,000. ( $15,000 of this amount related to equipment used in foctory operations; the remaining $7,000 related to equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, $ ? 1. Goods that had cost $228,000 to manufacture according to their job cost sheets were completed. 1. Sales for the year (all paid in cash) totaled $516,000. The total cost to manufocture these goods according to their job cost sheets was $217,000 Required: 1. Prepare joumal entries to record the tronsactions for the year. 2. Prepare T-accounts for each inventory account, Monufacturing Overhead, and Cost of Goods Sold. Post relevant data from your joumal entries to these T-accounts (don't forget to enter the beginning bolances in your inventory accounts). 3A. Is Manufocturing Overheod underapplied or overapplied for the yeor? 38. Prepare a journal entry to close any balance in the Manufocturing Overhead occount to Cost of Goods Sold. 4. Prepore 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. rote: criter qeass perore cleans. The total cost to manufacture these goods according to their job cost sheets was $217,000. Note: Enter debits before credits. Prepare journal entries to record the transactions for the year. (If no entry is required for a transoction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet Note: Enter debits belore credits