Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required Information. The Foundational 15 (Algo) [LO3-1, LO3-2, LO3-3, LO3-4] [The following Information applies to the questions displayed below] Bunnell Corporation is a manufacturer
Required Information. The Foundational 15 (Algo) [LO3-1, LO3-2, LO3-3, LO3-4] [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: Raw materials Work in process) Finished goods $ 72,500 $18,200 $ 46,500 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 $15.50 per direct labor-hour was based on a cost formula that estimated $620,000 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, $628,000. b. Raw materials used in production, $598,000. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $570,000; Indirect labor, $150,000; selling and administrative salaries, $266,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $418,000. e Incurred various manufacturing overhead costs (e.g. depreciation, Insurance, and utilities), $470.000 1 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 $1,717,900 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 $3,225,000. The jobs cost $1.727,900 to manufacture according to their job cost sheets.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started