Bowen Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. Its predetermined overhead rate includes $1,000,000 of fixed overhead in the numerator and 50,000 direct labor-hours in the denominator. The company purchased (with cash) and used 48,000 yards of raw materials at a cost of $11.10 per yard. Its direct laborers worked 20,650 hours and were paid a total of $291,300. The company started and completed 9,400 units of finished goods during the period. Bowen's standard cost card for its only product is as follows: (1) Inputs Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit Standard Quantity or Hours 4.3 yards 3.7 hours 3.7 hours (2) Standard Price or Rate $16.50 per yard $14.00 per hour $20.00 per hour Standard Cost (1) X (2) $ 70.95 51.80 74.00 $196.75 Required: 1. When recording the raw material purchases: a. The Raw Materials inventory will increase (decrease) by how much? b. The Cash will increase (decrease) by how much? 2. When recording the raw materials used in production: a. The Raw Materials inventory will increase (decrease) by how much? b. The Work in Process inventory will increase (decrease) by how much? 3. When recording the direct labor costs added to production: a. The Work in Process inventory will increase (decrease) by how much? b. The Cash will increase (decrease) by how much? 4. When applying fixed manufacturing overhead to production, the Work in Process inventory will increase (decrease) by how much? 5. When transferring manufacturing costs from Work in Process to Finished Goods, the Finished Goods inventory will increase (decrease) by how much? Answer is not complete. 1a. The raw materials will increase by 1b. The cash will decrease by 2a decrease by 2b. The raw materials will The work in process will The work in process will increase by $ 792,000 $ 532,800 $ 792,000 $ 666,930 $ 486,920 $ 291,300 $ 695,600 3a. increase by 3b. The cash will decrease by > The work in process will increase by 15 The finished goods will increase