1.

• 1.Record the raw materials used in production.

• 2. What is the ending balance in Raw Materials?

• Record the accrued labor costs.

• 4. What is the total amount of manufacturing overhead applied to production during the year?

• 5. What is the total manufacturing cost added to Work in Process during the year?

• 6. Record the manufactured goods completed during this year.

• 7. What is the ending balance in Work in Process?

• 8. What is the total amount of actual manufacturing overhead cost incurred during the year?

• 9. Is manufacturing overhead underapplied or overapplied for the year? By how much?

• 10. What is the cost of goods available for sale during the year?

• 11. Record the cost of goods sold to the customer.

• 12. What is the ending balance in Finished Goods?

• 13. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year?

• 14. What is the gross margin for the year?

• 15. What is the net operating income for the year?

Required information (The following information applies to the questions displayed below.) Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $ 84,500 $ 35,000 $ 44,100 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $12.50 per direct labor-hour was based on a cost formula that estimated $500,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: a. Raw materials were purchased on account, $614,000. b. Raw materials used in production, $567,600. All of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $450,000; indirect labor, $150,000; selling and administrative salaries, $290,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $375,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $350,000. f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. g. Jobs costing $1,461,900 to manufacture according their job cost sheets were completed during the year. h. Jobs were sold on account to customers during the year for a total of $3,172,500. The jobs cost $1,471,900 to manufacture according to their job cost sheets