Selected T-accounts of Moore Company are given below for the just completed year: ? Debits Manufacturing Overhead 182, 140 Credits Print Bal. 1/1 Debits Bal. 12/31 Raw Materials 34,000 Credits 158,000 44,000 Work in Process 39,000 Credits 109,000 207,000 211,140 527,000 Debits 150 Bal. 1/1 Direct materials Direct labor Overhead Bal. 12/31 Factory Wages Payable 223,000 Bal. 1/1 Credits Bal. 12/31 18,500 218,000 13,500 Cost of Goods Sold ? Debits Bal. 1/1 Debits Bal. 12/31 Finished Goods 59,000 Credits ? 88,500 Required: 1. What was the cost of raw materials used in production during the year? 2. How much of the materials in (1) above consisted of indirect materials? 3. How much of the factory labor cost for the year consisted of indirect labor? 4. What was the cost of goods manufactured for the year? 5. What was the unadjusted cost of goods sold for the year? Do not include any underapplied or overapplied overhead in your answer. 6. If overhead is applied to production on the basis of direct labor cost, what predetermined overhead rate was in effect during the year? 7. Was manufacturing overhead underapplied or overapplied? By how much? 8. Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year. If $12,750 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost? Complete this question by entering your answers in the tabs below. Req 1 to 5 Reg 6 Req 7 Reg 8 Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year. If $12,750 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost? $ 39,140 Ending balance in the work in process Direct materials cost Applied overhead cost 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 $115,000 of manufacturing overhead for an estimated activity level of $50,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: Raw materials Work in process Finished goods $10,500 $ 4,300 $ 8,700 During the year, the following transactions were completed: a. Raw materials purchased on account, $ 163,000. b. Raw materials used in production, $144,000 (materials costing $125,000 were charged directly to jobs; the remaining materials were indirect). c. Costs for employee services were incurred as follows: Direct labor Indirect labor Sales commissions Administrative salaries $ 166,000 $ 300, 500 $ 24,000 $ 49,000 d. Rent for the year was $18,600 ($13,500 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Utility costs incurred in the factory, $19,000. f. Advertising costs incurred, $10,000. g. Depreciation recorded on equipment, $25,000. ($16,000 of this amount related to equipment used in factory operations; the remaining $9,000 related to equipment used in selling and administrative activities.) h. Record the manufacturing overhead cost applied to jobs. i. Goods that had cost $228,000 to manufacture according to their job cost sheets were completed. j. Sales for the year (all paid in cash) totaled $503,000. The total cost to manufacture these goods according to their job cost sheets was $220,000. Required: 1. Prepare journal entries to record the transactions for the year. 2. Prepare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your 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 and T-accounts you have prepared. General Journal Credit No 1 Transaction a. Debit 163,000 Raw materials Cash X 163,000 2 Work in process Manufacturing overhead Raw materials 125,000 19,000 144,000 3 C. Work in process Manufacturing overhead Sales commisions expense Administrative salaries expense Cash 166,000 300,500 24,000 49,000 539,500 d. Manufacturing overhead Rent expense Cash 13,500 5,100 18,600 e. 19,000 Manufacturing overhead Cash 19,000 10,000 Advertising expense Cash 10,000