Question
Bunnell Corporation is a manufacturer that uses job - order costing. On January 1 , the company's inventory balances were as follows: Raw materials$ 7
Bunnell Corporation is a manufacturer that uses joborder costing. On January the company's inventory balances were as follows: Raw materials$ Work in process$ Finished goods$ The company applies overhead cost to jobs on the basis of direct laborhours. For the current 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 for the year:
Raw materials were purchased on account, $
Raw materials used in production, $ All of of the raw materials were used as direct materials.
The following costs were accrued for employee services: direct labor, $; indirect labor, $; selling and administrative salaries, $
Incurred various selling and administrative expenses eg advertising, sales travel costs, and finished goods warehousing $
Incurred various manufacturing overhead costs eg depreciation, insurance, and utilities $Manufacturing overhead cost was applied to production.
The company actually worked direct laborhours on all jobs during the year.Jobs costing $ to manufacture according to their job cost sheets were completed during the year
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 total manufacturing cost added to Work in Process during the year?
What is the total amount of actual manufacturing overhead cost incurred during the year?
Is manufacturing overhead underapplied or overapplied for the year? By how much?
What is the cost of goods available for sale during the year?
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?
What is the gross margin for the year?
What is the net operating income for the year?
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