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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: Raw materiala Work in process Finished

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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: Raw materiala Work in process Finished goods $61.500 $ 32,400 $ 42,900 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 $13.75 per direct labor-hour was based on a cost formula that estimated $550,000 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, $514,000. b. Raw materials use in production, $468,200. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $500,000; indirect labor, $150,000; selling and administrative salaries, $309,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing). $449,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, Insurance, and utilities). $400,000. 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 $1,459,350 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 $2.985,000. The Jobs cost $1,469,350 to manufacture according to their job cost sheets. Foundational 3-3 3. What is the journal entry to record the labor costs incurred during the year? (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list 1 Record the accrued labor costs. Credit Journal entry worksheet Record the accrued labor costs. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal

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