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prepare T-accounts for each inventory account, Manufacturing overhead and cost of goods sold. post revelant data from your journal entries to these T-accounts.

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 $67,500 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 Work in process Finished goods $ 10,500 $4,200 During the year, the following transactions were completed a. Raw materials purchased on account, $167.000, b. Raw materials used in production, $150.000 (materials costing 5121,000 were charged directly to jobs the remaining materials were indirect) c. Costs for employee services were incurred as follows: Direct labor Indirect labor Sales comissions Administrative salaries $155.000 $ 138,000 $ 27,000 5 41,000 c. Costs for employee services were incurred as follows: ning materials were Direct labor Indirect labor Sales comissions Administrative salaries $ 155,000 $ 138,800 $ 27,000 $41,000 d. Rent for the year was $18,700 ($14,000 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, $11,000. 9 Depreciation recorded on equipment, $24,000. ($17,000 of this amount related to equipment used in factory operations, the remaining $7000 related to equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs. $_? I Goods that had cost $227,000 to manufacture according to their job cost sheets were completed J. 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 $218.000 Req 1 Reg 2 Req 3A Req 3B Req 4 Prepare T-accounts for each inventory account, Manufacturing Overhead, and cost of Goods Sold. Post relevant data from your journ- T-accounts (don't forget to enter the beginning balances in your inventory accounts). (Do not round intermediate calculations.) Work in Process Beg Bal a Raw Materials 10.500 167.000 Beg Bal b 227,000 4,200 121,000 155,000 232,500 c th End. Bal 177.500 End Bal 285 700 Beg Bal Finished Goods 8,000 227.000 218.000 Beg Ball Manufacturing Overhead 29,000 218,000 232,500 14,000 19.000 17 000 End Bar 17,000 Te 9

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