Need this Accounting problem finished before midnight on 12/15/17. Should be fai

Question

Need this Accounting problem finished before midnight on 12/15/17. Should be fairly easy for somebody familiar with the subject.

Thanks in advance!

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 $92,000 of manufacturing overhead for an estimated activity level of $40,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows Raw materials Work in process Finished goods $10,700 $ 4,900 $ 8,300 During the year, the following transactions were completed a. Raw materials purchased for cash, $166,000. b. Raw materials requisitioned for use in production, $140,000 (materials costing $127,000 were charged directly to jobs; the remaining materials were indirect) c. Costs for employee services were incurred as follows $176,000 $336,100 Direct labor Indirect labor Sales commissions 30,000 Administrative salaries $ 46,000 d. Rent for the year was $18,200 ($13,300 of this amount related to factory operations, and the remainder related to selling and administrative activities) e. Utility costs incurred in the factory, $13,000 f. Advertising costs incurred, $11,000 g. Depreciation recorded on equipment, $23,000. ($15,000 of this amount was on equipment used in factory operations, the remaining $8,000 was on equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, $? Goods that had cost $229,000 to manufacture according to their job cost sheets were completed j. Sales for the year totaled $518,000. The total cost to manufacture these goods according to their job cost sheets was $216,000

Explanation / Answer

Raw Materials Beg.Bal 10,700 WIP 127,000 cash 166,000 MOH 13000 End bal 36,700 Work in process beg. Bal 4,900 Finished 229,000 DM 127,000 DL 176,000 MOH 404,800 End bal 483,700 (92000/40000= 2.3 overhead applied = 176000*2.3 404800 Finished goods Beg.Bal 8,300 COGS 216,000 WIP 229,000 End bal 21,300 manufacturing overhead ind mat 13,000 applied 404,800 ind lab 336,100 rent 13,300 utiliy cost 13,000 dep 15,000 end bal 14,400 Cost of goods sold Finished 216,000 over appled 14,400 End bal 201600 income statement sales revenue 518,000 cost of goods sold 201600 gross profit 316,400 selling and administrative expense rent 4900 advertising cost 11,000 Depreciation 8,000 sales commissions 30,000 administrative salaries 46,000 total operating expense 99,900 Net income 216,500

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.