Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below] Bunnell Corporation is a manufacturer that uses job-order costing. On January 1 , the

image text in transcribed
image text in transcribed
Required information [The following information applies to the questions displayed below] Bunnell Corporation is a manufacturer that uses job-order costing. On January 1 , the company's inventory balances were as follows 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. Row materials were purchased on account, $510,000 b. Raw matenals 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, $600,000; indirect labor, $150,000, selling and administrative salaties. $240,000. d. Incurred various selling and administrative expenses (eg, advertisingi sales travel costs, and finished goods warehousing), $367,000 e. Incurred various manufacturing overtiead costs (e.g. depreciation, insurance, and utilties), $500,000 f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year 9. Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year. in Jobs were sold on account to customers during the year for a total of $2.800,000. The jobs cost $1,690,000 to mantacture according to their job cost sheets Required: 1. What is the joumal entry to record raw materlats used in production? (If no entry is required for a tronsaction/event, select "No journal entry required in the first account field.) Required: 1. What is the joumal entry to record raw materials used in production? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the faw materials used in production. Motei tinter debits beforie credits

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_2

Step: 3

blur-text-image_3

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

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

9th Edition

978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475

More Books

Students also viewed these Accounting questions