Gold Nest Corporation manufactures furniture. Due to a fire in the administrative offices, the accounting records...

 

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Gold Nest Corporation manufactures furniture. Due to a fire in the administrative offices, the accounting records for November of the current year were partially destroyed. You have been able to piece together the following information from the ledger. Raw Material and $45,000 ACAL $ 65,000 $ OH 40,000 Account Payable 12,000 WIP $8,000 COGS Salary Payable $1,500 and Fineshed Goods $35,000 Soles Account Receivables $8,000 You were able to gather the following additional information: a) Collections of accounts receivable during November amounted to $205,000. b) Sales revenue in November was 120 percent of cost of goods sold. All sales are on account. c) Overhead is applied using an annual predetermined overhead rate using direct-labor hours (based on practical capacity). 2. Prepare a Schedule of Cost of Goods Sold Hint: it may be useful to complete all the T-Accounts to solve the exercise d) The budgeted overhead for the current year is $720,000. e) Budgeted direct-labor cost for the current year is $960,000. The direct-labor rate is $20 per hour. f) The accounts payable balance on November 30 was $1,000. Only purchases of raw material are credited to accounts payable. A payment of $81,000 was made on November 15. g) November's cost of goods sold amounted to $180,000. h) The November 30 balance in finished-goods inventory was $5,000. i) Payments of $79,500 were made to direct-labor employees during November. The October 31 balance in the Wages Payable account was $1,000. i) The actual manufacturing overhead for November was $65,000. k) An analysis of the furniture still in process on November 30 revealed that so far these items have required 500 hours of direct labor and $20,500 of direct material. Required [Show all your calculations to receive full points]. T-Accounts are also in the Excel file. 1. Prepare a Schedule of Cost of Goods Manufactured Gold Nest Corporation manufactures furniture. Due to a fire in the administrative offices, the accounting records for November of the current year were partially destroyed. You have been able to piece together the following information from the ledger. Raw Material and $45,000 ACAL $ 65,000 $ OH 40,000 Account Payable 12,000 WIP $8,000 COGS Salary Payable $1,500 and Fineshed Goods $35,000 Soles Account Receivables $8,000 You were able to gather the following additional information: a) Collections of accounts receivable during November amounted to $205,000. b) Sales revenue in November was 120 percent of cost of goods sold. All sales are on account. c) Overhead is applied using an annual predetermined overhead rate using direct-labor hours (based on practical capacity). 2. Prepare a Schedule of Cost of Goods Sold Hint: it may be useful to complete all the T-Accounts to solve the exercise d) The budgeted overhead for the current year is $720,000. e) Budgeted direct-labor cost for the current year is $960,000. The direct-labor rate is $20 per hour. f) The accounts payable balance on November 30 was $1,000. Only purchases of raw material are credited to accounts payable. A payment of $81,000 was made on November 15. g) November's cost of goods sold amounted to $180,000. h) The November 30 balance in finished-goods inventory was $5,000. i) Payments of $79,500 were made to direct-labor employees during November. The October 31 balance in the Wages Payable account was $1,000. i) The actual manufacturing overhead for November was $65,000. k) An analysis of the furniture still in process on November 30 revealed that so far these items have required 500 hours of direct labor and $20,500 of direct material. Required [Show all your calculations to receive full points]. T-Accounts are also in the Excel file. 1. Prepare a Schedule of Cost of Goods Manufactured