Required informationThe Foundational 15 (Algo) [LO3-1, LO3-2, LO3-3, LO3-4]Skip to question

[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	$ 72,500
Work in process	$ 18,200
Finished goods	$ 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:

1. Raw materials were purchased on account, $628,000.
2. Raw materials used in production, $598,000. All of of the raw materials were used as direct materials.
3. The following costs were accrued for employee services: direct labor, $570,000; indirect labor, $150,000; selling and administrative salaries, $266,000.
4. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $418,000.
5. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $470,000.
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 $1,717,900 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 $3,225,000. The jobs cost $1,727,900 to manufacture according to their job cost sheets.

Foundational 3-1 (Algo)

Required:

1. What is the journal entry to record raw materials used in production?

View transaction list Journal entry worksheet Record the raw materials used in production. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal