Required information

The Foundational 15 [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 companys inventory balances were as follows:

Raw materials	$	62,500
Work in process	$	23,200
Finished goods	$	36,900

The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the companys predetermined overhead rate of $11.00 per direct labor-hour was based on a cost formula that estimated $440,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year:

1. Raw materials were purchased on account, $694,000.
2. Raw materials use in production, $644,800. All of of the raw materials were used as direct materials.
3. The following costs were accrued for employee services: direct labor, $390,000; indirect labor, $150,000; selling and administrative salaries, $246,000.
4. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $430,000.
5. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $290,000.
6. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.
7. Jobs costing $1,403,100 to manufacture according to their job cost sheets were completed during the year.
8. Jobs were sold on account to customers during the year for a total of $2,827,500. The jobs cost $1,413,100 to manufacture according to their job cost sheets.

rev: 09_28_2018_QC_CS-140681

Foundational 3-7

7. What is the ending balance in Work in Process?

Required information The Foundational 15 (LO3-1, LO3-2, LO3-3, LO3-4) The following information applies to the questions displayed below) Part 1 of 2 0.75 points Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Skipped Raw materials $ 62.500 Work in process $ 23,200 Finished goods $ 36,900 eBook 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 $11.00 per direct labor-hour was based on a cost formula that estimated $440,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: Print References a. Raw materials were purchased on account, $694,000. b. Raw materials use in production, $644,800. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $390,000, indirect labor, $150,000, selling and administrative salaries, $246,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing). $430,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities). $290,000 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 $1,403,100 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 $2,827,500. The jobs cost $1,413,100 to manufacture according to their job cost sheets. Foundational 3-7 7. What is the ending balance in Work in Process? Work in Process Beg Bal. End, Bal. 010