Question
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
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:
- Raw materials were purchased on account, $694,000.
- Raw materials use in production, $644,800. All of of the raw materials were used as direct materials.
- The following costs were accrued for employee services: direct labor, $390,000; indirect labor, $150,000; selling and administrative salaries, $246,000.
- Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $430,000.
- Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $290,000.
- Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.
- Jobs costing $1,403,100 to manufacture according to their job cost sheets were completed during the year.
- 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. 010Step by Step Solution
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