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 45,000 yards of raw materials at a cost of $11.00 per yard. Its direct laborers worked 20,600 hours and were paid a total of $291,200. The company started and completed 9,300 units of finished goods during the period. Bowen's standard cost card for its only product is as follows: Inputs Direct materials Direct labor Fixed manufacturing overhead Total standard cont per unit (1) Standard Quantity or Hours 4.2 yards 3.6 hours 3.6 hours (2) Standard Standard Price Cost or Rate (1) (2) $16.00 per yard 67.20 $14.00 per hour 50.40 $20.00 per hour 72.00 $199.60 Required: 1. When recording the raw material purchases 8. 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? 1 The raw materials will 16. The cash wil 2a. The raw materials will 20. The work in process will 3. The work in process will 3. The cash will 4 The work in process wil 15 The finished goods wil by by by by by by by by