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The following events occurred over the course of a year at Bonita Corp, which uses a job order costing system: 1. Direct materials purchases totaled

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The following events occurred over the course of a year at Bonita Corp, which uses a job order costing system: 1. Direct materials purchases totaled $497,000. Bonita Corp tracks its direct materials separately from its indirect materials. Purchases were made on account. 2. $240,000 of indirect materials were used in production. Bonita uses a separate Supplies Inventory account for indirect materials. 3. $417,000 of direct materials were used in production 4. The direct labor payroll was $950,011 (credit Wages Payable). 5. Other manufacturing overhead costs incurred during the year totaled $569,000. 6. Bonita applies overhead based on a predetermined overhead rate of $15 per machine hour. The company used 50,500 machine hours during the year. 7. During the year, Bonita transferred goods costing $2,100,000 into the finished Goods Inventory account. 8. Bonita sold products with a manufacturing cost of $2,004,000 to customers during the year Prepare T-accounts for the following accounts: Direct Materials Inventory, Work in Process Inventory Manufacturing Overhead Control, and finished Goods Inventory. Record the transactions from part (a) in the T-accounts and calculate ending account balances. Assume the following beginning account balances (Post entries in order presented in the problem): Account Direct Materials Inventory Work In Process Inventory Finished Goods Inventory Balance $29,000 $13,000 $39,000 Direct Materials Inventory Bal 29000 Work in Process Inventory Bal. V 13000 13000 07 Bal. Manufacturing Overhead II Bal. Manufacturing Overhead Bal. Finished Goods Inventory Bal. 39000 39000 39000 Bal. 39000 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK x Your answer is incorrect. Try again. Was overhead under- or overapplied for the year? By how much? x x by $ Overhead was Overapplied

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