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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 $85,500 of manufacturing overhead for an estimated activity level of $45,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: Raw materials $ 10,400 Work in process $ 4,800 Finished goods $ 8,100 During the year, the following transactions were completed: Raw materials purchased on account, $162,000. Raw materials used in production, $141,000 (materials costing $128,000 were charged directly to jobs; the remaining materials were indirect). Costs for employee services were incurred as follows: Direct labor $ 159,000 Indirect labor $ 225,000 Sales commissions $ 28,000 Administrative salaries $ 50,000 Rent for the year was $18,600 ($13,100 of this amount related to factory operations, and the remainder related to selling and administrative activities). Utility costs incurred in the factory, $20,000. Advertising costs incurred, $15,000. Depreciation recorded on equipment, $21,000. ($17,000 of this amount related to equipment used in factory operations; the remaining $4,000 related to equipment used in selling and administrative activities.) Manufacturing overhead cost was applied to jobs, $ ? . Goods that had cost $229,000 to manufacture according to their job cost sheets were completed. Sales for the year (all paid in cash) totaled $512,000. The total cost to manufacture these goods according to their job cost sheets was $217,000. 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 j
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 $85,500 of manufacturing overhead for an estimated activity level of $45,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: Raw materials $ 10,400 Work in process $ 4,800 Finished goods $ 8,100 During the year, the following transactions were completed: Raw materials purchased on account, $162,000. Raw materials used in production, $141,000 (materials costing $128,000 were charged directly to jobs; the remaining materials were indirect). Costs for employee services were incurred as follows: Direct labor $ 159,000 Indirect labor $ 225,000 Sales commissions $ 28,000 Administrative salaries $ 50,000 Rent for the year was $18,600 ($13,100 of this amount related to factory operations, and the remainder related to selling and administrative activities). Utility costs incurred in the factory, $20,000. Advertising costs incurred, $15,000. Depreciation recorded on equipment, $21,000. ($17,000 of this amount related to equipment used in factory operations; the remaining $4,000 related to equipment used in selling and administrative activities.) Manufacturing overhead cost was applied to jobs, $ ? . Goods that had cost $229,000 to manufacture according to their job cost sheets were completed. Sales for the year (all paid in cash) totaled $512,000. The total cost to manufacture these goods according to their job cost sheets was $217,000. 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 j
Thejournal entriesto record the transactions for the year is showed below.1.JournalEntries:a. Raw materials purchased on account:Raw Materials Inventory $162,000Accounts Payable $162,000b. Rawmaterialsused inproduction(direct and indirect):Work in Process Inventory $128,000Manufacturing Overhead $13,000Raw Materials Inventory $141,000c.Costsfor employee services (direct labor, indirect labor, sales commissions, administrative salaries):Work in Process Inventory $159,000Manufacturing Overhead $225,000Sales Commissions Expense $28,000Administrative Salaries Expense $50,000d.Rentfor the year (factory operations and selling/administrative activities):Manufacturing Overhead $13,100Selling and Administrative Expenses $5,500Rent Payable $18,600e.Utilitycostsincurred in the factory:Manufacturing Overhead $20,000Cash $20,000f. Advertising costs incurred:Selling and Administrative Expenses $15,000Cash $15,000g.Depreciationrecordedon equipment (factory operations and selling/administrative activities):Depreciation Expense (Factory) $13,100Depreciation Expense (Selling and Administrative) $4,900Accumulated Depreciation $18,0002. T-Accounts:a. Raw Materials Inventory:Beginning balance: $10,400Purchases: $162,000Direct Materials Used: $128,000Ending balance: ?b.WorkinProcessInventory:Beginning balance: $4,800Direct Labor: $159,000Manufacturing Overhead: ?Direct Materials Used: $128,000Ending balance: ?c. Finished Goods Inventory:Beginning balance: $8,100Cost of Goods Manufactured: $217,000Ending balance: ?d.ManufacturingOverhead:Beginning balance: $0Rent: $13,100Utilities: $20,000Depreciation (Factory): $13,100Applied to Jobs: ?Ending balance: ?e. Cost of Goods Sold:Beginning balance: $0Cost of Goods Manufactured: $217,000Ending balance: ?Learn more aboutJournalhere:brainly.com/question/32420859#SPJ2...