Bunnell Corporation

Phase" l Grer >, DTA weighted Google 20 connect html nework Hel 0 Required information The following information applies to the questions displeyed below] Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's Inventory balances were as follows 40,000 Hork in process 18,000 Pinished goods35,000 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 labor-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 a. Raw materials were purchased on account, $510,000. b. Raw materials use 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 d. Incurred various seling and administrative expenses (e.g, advertising, sales travel costs, and finished goods e. Incurred various manufacturing overhead costs (e.g, depreciation, insurance, and utilities), $500,000. g. Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year administrative salaries, $240,000. warehousing). $367,000 Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year h. 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 Prey 789-15 of20