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Bunnell Corporation is a manufacturer that uses job - order costing. On January 1 , the company's inventory balances were as follows: The company applies
Bunnell Corporation is a manufacturer that uses joborder costing. On January the company's inventory balances were
as follows:
The company applies overhead cost to jobs using direct laborhours. For this year, the company's predetermined
overhead rate of $ per direct laborhour was based on a cost formula that estimated $ of total manufacturing
overhead for an estimated activity level of direct laborhours. The following transactions were recorded this year:
a Raw materials were purchased on account, $
b Raw materials used in production, $ All of of the raw materials were used as direct materials.
c The following costs were accrued for employee services: direct labor, $; indirect labor, $; selling and
administrative salaries, $
d Incurred various selling and administrative expenses eg advertising, sales travel costs, and finished goods
warehousing $
e Incurred various manufacturing overhead costs eg depreciation, insurance, and utilities $
f Manufacturing overhead cost was applied to production. The company actually worked direct laborhours on all
jobs during the year.
g Jobs costing $ to manufacture according to their job cost sheets were completed during the year.
h Jobs were sold on account to customers during the year for a total of $ The jobs cost $ to
manufacture according to their job cost sheets.
What is the journal entry to record the labor costs for this year?
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