Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $ 40,000 $ 18,000 $ 35,000 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 $16.25 per direct lobor-hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor hours. The following transactions were recorded for the year. Raw materials were purchased on account, $510,000 b. Raw materials used in production, $480,000. All of of the raw materials were used as direct materials c. The following costs were accrued for employee services direct labor, $600,000; Indirect labor $150,000, selling and administrative salaries, $240,000 d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing). $367,000. e Incurred various manufacturing overhead costs (eg. depreciation, insurance, and utilities), $500,000 1. Manufacturing overhead cost was applied to production. The company actually worked 41000 direct labor-hours on all jobs during the year 9. Jobs costing $1680,000 to manufacture according to their job cost sheets were completed during the year n Jobs were sold on account to customers during the year for a total of $2,800,000. The jobs cost $1,690,000 to manufacture according to their job cost sheets. Foundational 3-5 5. What is the total manufacturing cost added to Work in Process during the year? Total manufacturing cost 6. What is the Journal entry to record the transfer of completed jobs that is referred to in Item g above? (if no entry is required for a transaction/event, select "No joumal entry required" in the first account fleld.) View transaction that Journal entry worksheet 1 Record the manufactured goods completed during this year Notenter det before credits General Journal Dobit Transaction 1 Grodh Incandan concentre Vincennoun Foundational 3-7 7. What is the ending balance in Work in Process? Work in Process Beg. Bal. ces End. Bal. Foundational 3-8 8. What is the total amount of actual manufacturing overhead cost incurred during the year? Total actual manufacturing overhead cost Foundational 3-9 9. Is manufacturing overhead underapplied or overapplied for the year? By how much? Foundational 3-10 10. What is the cost of goods available for sale during the year? Cost of goods available for sale

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

10th Edition

324300980, 978-0324300987

Students also viewed these Accounting questions