k Gold Nest Company of Guandong, China, is a family-owned enterprise that makes
ID: 2420241 • Letter: K
Question
k
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. All of the company’s transactions with customers, employees, and suppliers are conducted in cash; there is no credit.
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 $108,000 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 requisitioned for use in production, $142,000 (materials costing $125,000 were charged directly to jobs; the remaining materials were indirect).
Rent for the year was $18,400 ($13,800 of this amount related to factory operations, and the remainder related to selling and administrative activities).
Depreciation recorded on equipment, $21,000. ($17,000 of this amount was on equipment used in factory operations; the remaining $4,000 was on equipment used in selling and administrative activities.)
Manufacturing overhead cost was applied to jobs, $?
Sales for the year totaled $509,000. The total cost to manufacture these goods according to their job cost sheets was $217,000.
Required:
Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations to 2 decimal places.)
Prepare t-accounts for inventories, 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). (Round your intermediate calculations to 2 decimal places.)
Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations to 2 decimal places.)
Prepare an income statement for the year. (Round your intermediate calculations to 2 decimal places.)
I just need the second half, not a-j.
k
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. All of the company’s transactions with customers, employees, and suppliers are conducted in cash; there is no credit.
Explanation / Answer
As the first parts 1-2 has been done , attached are the working from 3-4;
Gold Nest Company Estimated Mfg Overhead 108,000 Estimated Direct Labor cost 45,000 Predetermined Mfg OH /Direct labor $ 2.40Related Questions
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