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QUESTION 8 Brunson Manufacturing began operations in 2019 and provides the following summary of direct costs incurred during 2019 on customer orders: Job Direct Costs
QUESTION 8 Brunson Manufacturing began operations in 2019 and provides the following summary of direct costs incurred during 2019 on customer orders: Job Direct Costs Number Materials Labor Job status at 12/31/2019 544 $15,000 $1,650.00 Finished and delivered 545 $23,100 $24,625.00 Finished and delivered 546 $7,500 $8,250.00 Finished and unsold 547 $4,290 $4,750.00 Finished and delivered 548 $33,000 $36,300.00 Unfinished 549 $24,600 $12,000.00 Finished and unsold 550 $14,610 $16,375.00 Unfinished 551 $22,200 $24,500.00 Finished and delivered 552 $3,600 $4,000.00 Finished and unsold 553 $900 $1,100.00 Unfinished $148,800 $133,550 Brunson pays $6 per pound to purchase direct materials and pays direct laborers a wage of $25 per hour. The company applies overhead using a cost driver of pounds of direct materials and writes off any over/under applied overhead using the method covered in class. For 2019, Brunson budgeted the following: MOH of $84,800, 26,500 pounds of direct materials and 5,300 hours of direct labor. Assume further that for the 12-months ended 12/31/2019, Brunson reported Sales Revenue of $215,000 and total actual manufacturing overhead of $78,000. Consider the above information and select the answer below that shows the Gross Profit that Brunson will report for the 12-months ended 12/31/2019: A. $94,885 B. $67,237 C. $60,437 D. $61,797 E. None of the answer choices provided are correct
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