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Answer al questions and Label at work as required Part 1 Bhinct Corporation is a manufacturer that uses job-order costing On January 1, the company's inventory balances were as follows: Raw materials $42.000 Work in process $20,000 Finished goods $36.000 The company applies Overhead cost to jobs on the basis of direct latior hours. For the current year, the company's predetermined overhead rate of $16.50 per direct labor hou was based on a cost formula that estimated $660,000 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. 5520,000 Raw materials used in production. $465,000. All of the raw materials were used as direct materials The following costs were accrued for employee services direct labor, 5605,000, indirect labor. $150,000, selling and administrative salaries, $240,000 Incurred various selling and administrative expenses (eg. advertising, sales travel costs, and finished goods warehousing). $367,000 . incurred various manufacturing overhead costs (eg depreciation, insurance and utilities) $505.000 Manufacturing overhead cost was applied to production. The company actually worked 42.000 direct labor hours on all jobs during the year Jobs costing $1685 000 to manufacture according to their jobs Sheets were completed during the year Jobs were sold on account to customers during the year for a total of $2,750,000 The obs cost $1.695.000 to manufacture according to their pob cost sheets Required (Show all work Calculations!) a What is the journal entry to record the purchase of raw materials b. What is the ending balance in Raw Materials? Show T-Account) c. What is the journal entry to record the labor costs incurred during the year? a. What is the total amount of manutacturing overhead applied to production during the year? (Show complete calculations) e. What is the total manufacturing cost added to Work in Process during the year? 1 What is the journal entry to record the transfer of completed jobs that is referred to above? 9 What is the ending balance in Work in Process? h what is the total amount of actual manufacturing overhead cost incurred during the year? (Show T-Account) i. Is manufacturing overhead underapplied or overapplied for the year? By how much? j. What is the cost of goods available for sale during the year? (Show complete calculations) k. What is the journal entry to record the cost of goods sold referred to above? | What is the ending balance in Finished Goods? (Show T-Account) m. 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? n. What is the gross margin for the year? 0. What is the net operating income for the year
