Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the companys inventory balances were as follows:

Raw materials$ 60,500

Work in process$ 20,800

Finished goods$ 57,600

The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the companys predetermined overhead rate of $11.25 per direct labor-hour was based on a cost formula that estimated $450,000 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, $622,000.

Raw materials used in production, $591,800. All of of the raw materials were used as direct materials.

The following costs were accrued for employee services: direct labor, $400,000; indirect labor, $150,000; selling and administrative salaries, $280,000.

Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $400,000.

Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $300,000.

Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.

Jobs costing $1,360,750 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 $3,330,000. The jobs cost $1,370,750 to manufacture according to their job cost sheets.

Required information The Foundational 15 (Algo) [LO3-1, LO3-2, LO3-3, LO3-4] The following information applies to the questions displayed below) Bunnell Corporation is a manufacturer that uses job-order costing. On January 1 , the company's inventory balances were as follows: The company applies overhead cost to jobs on the basis of direct lobor-hours. For the current year, the companys predetermined overhead rate of $11.25 per direct labor-hour was based on a cost formula that estimated $450,000 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, $622,000. b. Raw moterials used in production, $591,800. All of of the raw materials were used bs drect materials. c. The following costs were acerued for employee services: direct labor, $400,000, indirect labor, $150,000; selling and administrative salaries, $280,000. d. Incurred various seling and administrative expenses (e-g. advertising. sales travel costs, ond finished goods warehousingh, $400,000 e. incurred various manufacturing overhead costs (e.g. depreciation, insurance, and utilies), $300,000. f. Manufactufing overhead cost was applied to production. The compary actuolly worked 41,000 direct labor houts on all jobs during the yeat. 9. Jobs costing $1,360,750 to manufacture according to their job cost sheets were completed during the year. 9. Jobs costing $1,360,750 to manufacture according to their jot cost sheets were completsd taring the year sold on account to customers during the year for a total of $3,330,000. The jobs cost $1,370,750 to manufacture according to their job cost sheets. were recorded for the year: a. Raw materlals were purchased on account, $622,000 b. Raw materials used in production, $591,800. All of of the raw msterials were used as direct materials, c. The following costs were accrued for emplayee services: direct labor, 5400,000 , indinect lobor, 5150,000 ; solling and administrative salaries, $280,000. d. incured various selling and administrative expenses (e.9-advertising. saies travel costs, and firished goods warehousingl 5400,000 . e. Incurred various manufacturing overhead costs (e.9, depreciation, insurance, and utites), 5300,000. f. Manufacturing overhead cost was appled to production. The company actuolly worked 41,000 direct labor-hours on all jobs during the yeac 9. Jobs costing $1,360,750 to manufacture according to their job cost sheets wese completed during the year h. Jobs were sold on account to customers during the year for a total of $3,330,000. The jhbs cost $1,390,750 to manufacture according to their job cost sheets Foundational 3-5 (Algo) 5. What is the total manufocturing cost added to Work in Process during the year? n. sobs were soic on account to customets dungg the year tos a totai or 2 s, ssu,uUu, ine joos cost 21,5ru,120 manufacture according to their job cost sheets. Foundational 3-7 (Algo) 7. What is the ending balance in Work in Process? a. Raw materials were purchased on account, $622,000. b. Raw materials used in production, $591,800. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $400,000; indirect labor, $150,000; sellin and administrative salaries, $280,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $400,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $300.000. f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hou all jobs during the year. g. Jobs costing $1,360,750 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 $3,330,000. The jobs cost $1,370,750 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? a. Raw materials were purchased on account, $622,000. b. Raw materials used in production, $591,800. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $400,000; indirect labor, $150,000; selling and administrative salaries, $280,000. d. Incurred various selling and administrative expenses (e.9., advertising. sales travel costs, and finished goods warehousing). $400,000 e. Incurred various manufacturing overhead costs (e.g. depreciation, insurance, and utilities), $300,000. 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 $1,360,750 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 $3,330,000. The jobs cost $1,370,750 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? Answer is complete but not entirely correct. were recorded for the year: a. Raw matetials were purchased on account, 5622.000 b. Raw materials used in production, $591800, All of of the raw materials were used as direct materials c. The following costs were accrued for employee services: direct labor, 5400 .000; indirect tabor, 5150,0 and administrative saleries, $2B0,000 d. Incurred various selling and administrative expenses fe. 9 - advertising. sales travel costs, and finished warehousing), $400,000. e. Incurred various manufacturing overhead costs feg, depreciation, insurance, and utilitiest, $300,000 1. Manufacturing overhead cost was applied to production. The compony actusly warked 41,000 direct all jobs during the year. 9. Jobs costing $1,360,750 to manufacture according to their job cost sheets were completed during the h. Jobs were sold on account to customers during the year for a total of $3,330,000, The jobs cost 513 ? manufacture according to their job cost sheets Foundational 3-10 (Algo) 10. What is the cost of goods available for sale duning the year? a. Raw materiak were purchased an account, $522,000 b. Raw materiats used in production, 5591,800 , Al of of the raw materials were used as direct meterials. and administrathe salsries, $280.000 d. Incurred various selisg and administrative enperses (e 9, ddvertising, saies trevel eerts, and finkshed goods warehousing, 5400,000 e. Incurred various manutacturing overhead costs (e- - depreciation, insuranse, and utikesl so0opoco f. Manufacturing overhead cost was appled to peoduction. The company actuaty wotked 41000 direct boof-hour or al jobs duting the year 9. Jobs costing $1,360750 to manufacture according to their job cost sheets wore completed during the yesc h Jobs were sold on account to customers duting the year for a totai of $3,330,000. The jobs coul 5 t370,750 10 manufacture according to their job cost sheets. Foundational 3-12 (Algo) 12. What is the ending balance in Finished Goods? The company applies overtead cost to jobs on the basis of direct wbor-hours. For the current year, the corpoanys predetermined overhesd rate of $11.25 per direct laber.hour was based on a cost formuls thst estimaled $450,000 of total manufecturing overhead for an estimated activity level of 40,000direct laberthours. The foliowing tumsicions were recorded for the year 0. Raw materials were purchased on account, $622.000 b. Raw materials used in production, $591,800. All of of the raw materials were used as direct materiols C. The following costs were accrued for employee services. direct laboc $400,000, indrect isbor, $150,000, seling and administrative salaries, $280,000. d. incurted varlous sclling and administrative expenses (e.g; advertishg, sales travel costs, and finished goods worehousing), $400,000 e. Incurred various manufacturing overhead costs {e.9, depreciation, insurance, and ulihies. 5300.000 1, Manufacturing overhead cost was applied to production. The compacty actually worked 41,000 direct loborihours on all jobs during the year: 9. Jobs costing $1,360,750 to manufacture according to their job cost sheets were completed during the yeat. h. Jobs were sold on account to customers during the year for a total of $3,330,000. The jobs cost $1,330,75010 manufacture according to their job cost sheets. Foundational 3-15 (Algo) 15. What is the net operating income for the year