All journal entries have been recorded correctly. However on journal C the credit info is incorrect....

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All journal entries have been recorded correctly. However on journal C the credit info is incorrect. It is either cash nor accounts payable. what would the credit entry be?   Given this info, is the manufacturing overhead underapplied or overapplied for the year?   record the above journal entry   prepare an income statement  Problem 3-16 Comprehensive Problem (LO3-1, LO3-2, LO3-4) 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 $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 $ 10,400 $ 4,600 $ 8,400 During the year, the following transactions were completed: a. Raw materials purchased on account, $ 165,000. b. Raw materials used in production, $142,000 (materials costing $126,000 were charged directly to jobs; the remaining materials were indirect). c. Costs for employee services were incurred as follows: Direct labor Indirect labor Sales commissions Administrative salaries 5 169,000 $ 316,500 $ 22,000 $ 41,000 d. Rent for the year was $18,500 ($13,500 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, $13,000. g. Depreciation recorded on equipment, $20,000. ($16,000 of this amount related to equipment used in factory operations, the remaining $4,000 related to equipment used in selling and administrative activities.) h. Record the manufacturing overhead cost applied to jobs. 1. 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 $511,000. The total cost to manufacture these goods according to their job cost sheets was $217,000. 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 for the year? 3. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. 4. Prepare an income statement for the year. All of the information needed for the income statement is available in the journal entries and T-accounts you have prepared. Journal entry worksheet < 0 3 0 6 6 O ..... @ > Cost for employee services incurred as follows: Direct labor $169,000 Indirect labor $316,900 Sales commissions $22,000 Administrative salaries $41,000 Note: Enter debits before credits. Transaction Credit General Journal Manufacturing overhead Sales commisions expense Administrative salaries expense Work in process Debit 316,900 22,000 41,000 169,000 548,900 T-accounts (don't forget to enter the beginning balances in your inventory accounts). (Do not round intermediate calculations.) Beg Bal Raw Materials 10,400 165,000 Beg Ba 142,000 Work in Process 4,600 126,000 227,000 169,000 388.7007 End. Bal 33,400 End Bal 461,300 Manufacturing Overhead Beg Bal Finished Goods 8,400 227,000 217,000 Beg Bal. 388,700 h 16,000 316.900 13,500 13,000 16,000 End Bal 18.400 Cost of Goods Sold End Bal 13 300 Beg Bal. 217,000 End. Bal 217,000 Journal entry worksheet Record the entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Note: Enter debits before credits. Transaction General Journal Debit Credit Gold Nest Company Income Statement For the Year Ended Selling and administrative expenses.

 · Answer

1) journal entries    S.no account title and explanation debit ($) credit ($)   1 Raw material inventory 165000     Cash  165000   2 work in process 126000     Manufacturing overhead 16000     RAW MATERIAL INVENTORY  142000   3 work in process 169000     Manufacturing overhead 316900     Sales commission 22000     Administrative salaries 41000     Cash  548900   4 manufacturing overhead 13500     Rental expenses 5000     Cash  18500   5 manufacturing overhead 13000     Cash  13000   6 advertising 13000     Cash  13000   7 manufacturing overhead 16000     Depreciation 4000     Accumulated depreciation  20000   8 work in process (note below) 388700     Manufacturing overhead  388700   9 finished goods 227000     Work in process  227000   10 cash 511000     Sales  511000   11 cost of goods sold 217000     Finished goods  217000    T accounts &#8203;&#8203;&#8203;&#8203;&#8203;&#8203;. RAW MATERIAL INVENTORY    Beginning balance 10900 work in process 142000   Cash 165000       Balance 33900    work in process    Beginning balance 4600 finished goods 227000   Raw material inventory 126000     Cash 169000     Manufacturing overhead 388700       Balance 461300      manufacturing overhead    Raw material inventory 16000 work in process 388700   Cash 316900     Cash 13500     Cash 13000     Accumulated depreciation 16000     Balance (overapplied overhead) 13300      finished goods    Beginning balance 8400 cost of goods sold 217000   Work in process 227000       Balance 18400      cost of goods sold    Finished goods 217000 manufacturing overhead (overapplied) 13300     Balance 203700    3a) actual overhead applied - applied overhead    375400- 388700 = 13300 3b) manufacturing overhead 13300    Cost of goods sold. 13300 4). Income statement    Particular amount($) amount($)   Sales  511000   (-) cost of goods sold  (203700)   Gross margin  307300   Less expenses     Sales commission 22000    Administrative salaries 41000    Rent 5000    Advertising 13000    Depreciation 4000 (85000)      NET OPERATING INCOME  222300      ALL THE BEST    PLEASE DO SUPPORT US    ANY DOUBT PLEASE COMMENT BELOW THANK YOU.

All journal entries have been recorded correctly. However on journal C the credit info is incorrect....

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S.no	account title and explanation	debit ($)	credit ($)
1	Raw material inventory	165000
	Cash		165000
2	work in process	126000
	Manufacturing overhead	16000
	RAW MATERIAL INVENTORY		142000
3	work in process	169000
	Manufacturing overhead	316900
	Sales commission	22000
	Administrative salaries	41000
	Cash		548900
4	manufacturing overhead	13500
	Rental expenses	5000
	Cash		18500
5	manufacturing overhead	13000
	Cash		13000
6	advertising	13000
	Cash		13000
7	manufacturing overhead	16000
	Depreciation	4000
	Accumulated depreciation		20000
8	work in process (note below)	388700
	Manufacturing overhead		388700
9	finished goods	227000
	Work in process		227000
10	cash	511000
	Sales		511000
11	cost of goods sold	217000
	Finished goods		217000

Beginning balance	10900	work in process	142000
Cash	165000
		Balance	33900

Beginning balance	4600	finished goods	227000
Raw material inventory	126000
Cash	169000
Manufacturing overhead	388700
		Balance	461300

Beginning balance	8400	cost of goods sold	217000
Work in process	227000
		Balance	18400

Finished goods	217000	manufacturing overhead (overapplied)	13300
		Balance	203700

Particular	amount($)	amount($)
Sales		511000
(-) cost of goods sold		(203700)
Gross margin		307300
Less expenses
Sales commission	22000
Administrative salaries	41000
Rent	5000
Advertising	13000
Depreciation	4000	(85000)
NET OPERATING INCOME		222300