Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $ 77,000 $ 29,000 $ 59,400 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 $13.25 per direct labor-hour was based on a cost formula that estimated $530,000 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, $708,000. b. Raw materials used in production, $666,400. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $480,000, indirect labor, $150,000; selling and administrative salaries, $335,000. d. Incurred various selling and administrative expenses (eg, advertising, sales travel costs, and finished goods warehousing). $397,000. e. Incurred various manufacturing overhead costs (eg, depreciation, insurance, and utilities), $380,000. 1. 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 $1,606,150 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 $3,165,000. The jobs cost $1,616,150 to manufacture according to their job cost sheets. Foundational 3-2 (Algo) 2. What is the ending balance in Raw Materials? Raw Materials Debit Credit Beginning balance Ending balance Bunnell Corporation is a manufacturer that uses job-order costing On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $ 77,000 $ 29,000 $ 59,400 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 $13.25 per direct labor-hour was based on a cost formula that estimated $530,000 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, $708,000. b. Raw materials used in production, $666,400. All of of the raw materials were used as direct materials c. The following costs were accrued for employee services: direct labor, $480,000, indirect labor, $150,000; selling and administrative salaries, $335,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $397,000 e. Incurred various manufacturing overhead costs (eg, depreciation, insurance, and utilities), $380,000. 1. 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 $1.606.150 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 $3.165.000 The jobs cost $1,616,150 to manufacture according to their job cost sheets Foundational 3-5 (Algo) 5. What is the total manufacturing cost added to Work in Process during the year? Total manufacturing cost Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $77,000 $ 29,000 $ 59,400 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 $13.25 per direct labor-hour was based on a cost formula that estimated $530,000 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, $708,000. b. Raw materials used in production, $666,400. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $480,000, indirect labor, $150,000, selling and administrative salaries, $335,000. d. Incurred various selling and administrative expenses (eg, advertising, sales travel costs, and finished goods warehousing), $397,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $380,000. 1. 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 $1.606,150 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 $3,165,000. The jobs cost $1,616,150 to manufacture according to their job cost sheets. Foundational 3-7 (Algo) 7. What is the ending balance in Work in Process? Work in Process Debit Credit Beginning balance Ending balance Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $ 77,000 $ 29,000 $ 59,400 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 $13.25 per direct labor-hour was based on a cost formula that estimated $530,000 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, $708,000. b. Raw materials used in production, $666,400. All of of the raw materials were used as direct materials The following costs were accrued for employee services: direct labor, $480,000; indirect labor, $150,000: selling and administrative salaries, $335,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $397,000. e. Incurred various manufacturing overhead costs (e.g. depreciation, insurance, and utilities), $380,000 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 $1,606,150 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 $3,165,000. The jobs cost $1,616.150 to manufacture according to their job cost sheets Foundational 3-8 (Algo) 8. What is the total amount of actual manufacturing overhead cost incurred during the year? Total actual manufacturing overhead cost Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials $ 77,000 Work in process $ 29,000 Finished goods $ 59,400 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 $13.25 per direct labor-hour was based on a cost formula that estimated $530,000 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, $708,000. b. Raw materials used in production, $666,400. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $480,000, indirect labor, $150,000, selling and administrative salaries, $335,000. d. Incurred various selling and administrative expenses (eg, advertising, sales travel costs, and finished goods warehousing), $397,000 e. Incurred various manufacturing overhead costs (eg, depreciation, insurance, and utilities), $380,000. 1 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 $1,606,150 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 $3,165,000. The jobs cost $1.616,150 to manufacture according to their job cost sheets. Foundational 3-9 (Algo) 9. Is manufacturing overhead underapplied or overapplied for the year? By how much? 4 Bunnell Corporation is a manufacturer that uses job-order costing On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $ 77,000 $ 29,000 $ 59,400 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 $13.25 per direct labor-hour was based on a cost formula that estimated $530,000 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, $708,000. b. Raw materials used in production, $666,400. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $480,000; indirect labor, $150,000; selling and administrative salaries, $335,000. d. Incurred various selling and administrative expenses (e.g. advertising, sales travel costs, and finished goods warehousing), $397,000. e. Incurred various manufacturing overhead costs (e.g, depreciation, insurance, and utilities), $380,000. 1. 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 $1,606,150 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 $3,165,000. The jobs cost $1,616,150 to manufacture according to their job cost sheets. Foundational 3-12 (Algo) 12. What is the ending balance in Finished Goods? Finished Goods Debit Credit Beginning balance Endinn halance Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $ 77,000 $ 29,000 $ 59,400 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 $13.25 per direct labor-hour was based on a cost formula that estimated $530,000 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, $708,000. b. Raw materials used in production, $666,400. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $480,000; indirect labor, $150,000; selling and administrative salaries, $335,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $397,000. e. Incurred various manufacturing overhead costs (e.g. depreciation, insurance, and utilities), $380,000. 1. 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 $1,606,150 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 $3,165,000 The jobs cost $1,616,150 to manufacture according to their job cost sheets Foundational 3-15 (Algo) 15. What is the net operating income for the year? Net operating income