Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ork Saved Help Save & E Che Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as

image text in transcribed
image text in transcribed
ork Saved Help Save & E Che Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: $ 77,500 32,800 $34,800 Raw materials Work in process Finished goods 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 $12.75 per direct labor-hour was based on a cost formula that estimated $510,000 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, $654,000. b. Raw materials use in production, $618,800. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $460,000; indirectylabor, $150,000; selling and administrative salaries, $270,000 d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $417,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $360,000. 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 $1,539,250 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 $3,172,500. The jobs cost $1,549,250 to manufacture according to their job cost sheets. Required information Journai entry workseet 1 Record the raw materials used in production. Note: Enter debits before credits. Transaction General Journal Debit Credit View general journal Record entry Clear entry

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

A Practical Guide To UK Accounting And Auditing Standards

Authors: Steve Collings

1st Edition

152650331X, 9781526503312

More Books

Students also viewed these Accounting questions

Question

Develop successful mentoring programs. page 418

Answered: 1 week ago