Gold Nest Company of Guandong, China, makes birdcages for the South China market. The company sells...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Gold Nest Company of Guandong, China, 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 that applies overhead to jobs based on direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $76,500 of manufacturing overhead for an estimated activity level of $45,000 direct labor dollars. The beginning inventory balances were as follows: Raw materials 10,200 Work in process $ 4,700 Finished goods $ 8,100 During the year, the following transactions were completed: a. Raw materials purchased on account, $170,000. b. Raw materials used in production, $144,000 (materials costing $129,000 were charged directly to jobs; the remaining materials were indirect). c. Cash paid to employees: Direct labor Indirect labor Sales commissions Administrative salaries $ 161,000 $ 194,600 $ 27,000 $ 49,000 d. Rent for the year was $18,200 ($13,000 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, $14,000. g. Depreciation on equipment, $24,000 ($18,000 related to equipment used in factory operations; the remaining $6,000 related to equipment used in selling and administrative activities). h. Manufacturing overhead cost applied to jobs, $ ? . i. Completed goods cost $225,000 to manufacture. j. Sales for the year (all paid in cash) totaled $507,000. The manufacturing cost of these goods was $216,000. 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? 3B. Prepare a journal entry to close Manufacturing Overhead to Cost of Goods Sold. 4. Prepare an income statement. All of the information needed for the income statement is available in the journal entries and T-accounts you have prepared. Complete this question by entering your answers in the tabs below. Required Required Required Required Required 1 2 3A 3B 4 Prepare journal entries to record the transactions for the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. View transaction list Show less Gold Nest Company of Guandong, China, 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 that applies overhead to jobs based on direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $76,500 of manufacturing overhead for an estimated activity level of $45,000 direct labor dollars. The beginning inventory balances were as follows: Raw materials 10,200 Work in process $ 4,700 Finished goods $ 8,100 During the year, the following transactions were completed: a. Raw materials purchased on account, $170,000. b. Raw materials used in production, $144,000 (materials costing $129,000 were charged directly to jobs; the remaining materials were indirect). c. Cash paid to employees: Direct labor Indirect labor Sales commissions Administrative salaries $ 161,000 $ 194,600 $ 27,000 $ 49,000 d. Rent for the year was $18,200 ($13,000 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, $14,000. g. Depreciation on equipment, $24,000 ($18,000 related to equipment used in factory operations; the remaining $6,000 related to equipment used in selling and administrative activities). h. Manufacturing overhead cost applied to jobs, $ ? . i. Completed goods cost $225,000 to manufacture. j. Sales for the year (all paid in cash) totaled $507,000. The manufacturing cost of these goods was $216,000. 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? 3B. Prepare a journal entry to close Manufacturing Overhead to Cost of Goods Sold. 4. Prepare an income statement. All of the information needed for the income statement is available in the journal entries and T-accounts you have prepared. Complete this question by entering your answers in the tabs below. Required Required Required Required Required 1 2 3A 3B 4 Prepare journal entries to record the transactions for the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. View transaction list Show less
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Instructions In simplified form, you are going to be producing a script. The script will create 2 tables, load the 2 tables with data and then using PL/SQL it will process those 2 tables and with 2...
-
Find E(g(X,Y)). Let X,Y have joint density fX,Y(x,y) = 1/36 for 0 x 4, 0 y 9, and fX,Y(x,y) = 0 otherwise. Let g(x,y) = xy.
-
Discuss how communication channels have changed over the years due to technology.
-
For the composite properties and environmental conditions described in Examples 3.6, 4.7, and 5.3, determine the hygrothermally degraded values of the longitudinal and transverse tensile strengths....
-
Shanahan Construction Company has entered into a contract beginning January 1, 2017, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to...
-
You are the HR Manager of a rapidly expanding technology company that acquired a smaller tech firm 2 years ago. Both companies had maintained low turnover rates in their respective call centers prior...
-
Find the real positive root(s) of the following equations/polynomials: 1. x- 3x -10 = 0 2. x -15x -4 = 0 3. x'- 3x + V2 = 0 4. x'-8x +4x +48 = 0 2x + 3x -1 lr-9x +15 = 0 5. Note: A root is a value...
-
A hockey player shoots a 160g puck with a force of 400N over a distance of 10cm. How much work did the player do on the puck? If the puck starts from rest, what will its velocity be when the player...
-
Each day a small business owner sells 200 pizza slices at $2.00 per slice and 85 sandwiches expenses come to $110 per day. What is the owner's profit for a ten-day period? The profit is $
-
The following image represents the ruler when the list in your document is selected. Which of the options is true about the resulting table? 2 3 1 Y . 1 . O The data in the Region column is...
-
4. Compare your value of slope with the value of 42 divided by g; what is the percent error between your value and the accepted value of 42 divided by g?
-
Prestige Bank has recently issued pass-through security after pooling 5300 identical mortgages into the security. Each mortgage has a fixed annual interest rate of 12% paid monthly and a maturity of...
-
Read the case study Exceprt from "Does Your Language Shape How You Think?" and write a paper about it
-
In Exercises 1558, find each product. (9 - 5x) 2
-
Using a search engine such as Google, search for power of a hypothesis test. Describe what the power of a hypothesis test is.
-
H 0 : The lottery is fair. Ha: The lottery is biased. Without using the terms null hypothesis and alternative hypothesis, identify the type I error and identify the type II error.
-
What do p, p, and P-value represent?
Study smarter with the SolutionInn App