Home Tools Essentials of Corp... Managerial-Accou... X Sign In 2. Share A 6 0 Q 133 (186 of 817) A Tho 20% - e lurp At least one signature is invalid. Signature Panel Search "Header Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: LO3-1, LO3- LO3-3, LO3 P. Export PDF Pe Create PDF Raw materials........... Work in process..................... Finished goods ........ .......... $40,000 $18,000 $35,000 Edit PDF 5 Comment Combine Files Organize Pages Redact 0 Protect 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 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, S600,000; indirect labor, $150,000; selling and administrative salaries, $240,000. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $367,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $500,000. 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 $1,680,000 to manufacture according to their job cost sheets were completed dur- ing 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. Required: 1. What is the journal entry to record raw materials used in production? 2. What is the ending balance in Raw Materials? 3. What is the journal entry to record the labor costs incurred during the year? 9.00 x 10.68 in Optimize PDF Fill & Sign L. Send for Review Sign and send documents for e-signature Start Free Trial Home Tools Essentials of Corp... Managerial-Accou... * A 693 60 Q 134 (167 of 817 Am o 120% Sign In Share hulp Signature Panel Search "Header At least one signature is invalid. $1,090,000 to manufacture according to their job cost sheets. equired: 1. What is the journal entry to record raw materials used in production? 2. What is the ending balance in Raw Materials? 3. What is the journal entry to record the labor costs incurred during the year? 4. What is the total amount of manufacturing overhead applied to production during the year? P. Export PDF Pe Create PDF Edit PDF 5 Comment Combine Files Organize Pages Chapter 3 Redact Protect Optimize PDF Fill & Sign 5. What is the total manufacturing cost added to Work in Process during the year? 6. What is the journal entry to record the transfer of completed jobs that is referred to in item g above? 7. What is the ending balance in Work in Process? 8. What is the total amount of actual manufacturing overhead cost incurred during the year? 9. Is manufacturing overhead underapplied or overapplied for the year? By how much? 10. What is the cost of goods available for sale during the year? 11. What is the journal entry to record the cost of goods sold referred to in item h above? 12. What is the ending balance in Finished Goods? 13. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year? 14. What is the gross margin for the year? 15. What is the net operating income for the year? La Send for Review Sign and send documents for e-signature Start Free Trial 9.00 x 10.68 in
