[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	$ 65,000
Work in process	$ 20,400
Finished goods	$ 52,800

The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the companys predetermined overhead rate of $15.75 per direct labor-hour was based on a cost formula that estimated $630,000 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, $646,000.

- Raw materials used in production, $608,000. All of of the raw materials were used as direct materials.

- The following costs were accrued for employee services: direct labor, $580,000; indirect labor, $150,000; selling and administrative salaries, $317,000.

- Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $376,000.

- Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $480,000.

- Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.

- Jobs costing $1,765,050 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 $2,970,000. The jobs cost $1,775,050 to manufacture according to their job cost sheets.

Required:

1. What is the journal entry to record raw materials used in production? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

options:

no journal entry required

accounts payable

accounts recievable

accumulated depreciation

cash

cost of goods sold

depreciation expense

finished goods

manufacturing overhead

raw materials

sales

selling and administrative expenses

wages payable

work in process

2. What is the ending balance in Raw Materials?

3. What is the journal entry to record the labor costs incurred during the year? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

options:

no journal entry required

accounts payable

accounts recievable

accumulated depreciation

cash

cost of goods sold

depreciation expense

finished goods

manufacturing overhead

raw materials

sales

selling and administrative expenses

wages payable

work in process

4. What is the total amount of manufacturing overhead applied to production during the year?

Manufacturing overhead applied:____________________

5. What is the total manufacturing cost added to Work in Process during the year?

Total manufacturing cost:______________

6. What is the journal entry to record the transfer of completed jobs that is referred to in item g above? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

options:

no journal entry required

accounts payable

accounts recievable

accumulated depreciation

cash

cost of goods sold

depreciation expense

finished goods

manufacturing overhead

raw materials

sales

selling and administrative expenses

wages payable

work in process

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

8. What is the total amount of actual manufacturing overhead cost incurred during the year?

Total actual manufacturing overhead cost:_________________

9. Is manufacturing overhead underapplied or overapplied for the year? By how much?

Overapplied or underapplied?:________________. By how much?:______________

10. What is the cost of goods available for sale during the year?

Cost of goods available for sale:_____________

11. What is the journal entry to record the cost of goods sold referred to in item h above? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

options:

no journal entry required

accounts payable

accounts recievable

accumulated depreciation

cash

cost of goods sold

depreciation expense

finished goods

manufacturing overhead

raw materials

sales

selling and administrative expenses

wages payable

work in process

12. What is the ending balance in Finished Goods?

13. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year?

Adjusted cost of goods sold:_____________

14. What is the gross margin for the year?

Gross margin:___________________

15. What is the net operating income for the year?

Net operating income:_____________

Journal entry worksheet Record the raw materials used in production. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Record the manufactured goods completed during this year. Note: Enter debits before credits. Work in Process \begin{tabular}{|l|l|l|l|} \hline \multicolumn{2}{|c|}{ Debit } & \multicolumn{2}{c|}{ Credit } \\ \hline Beginning balance & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Ending balance & & & \\ \hline \end{tabular} Journal entry worksheet Record the cost of goods sold to the customer. Note: Enter debits before credits. Finished Goods \begin{tabular}{|l|l|l|l|} \multicolumn{2}{c|}{ Finished Goods } \\ \hline \multicolumn{1}{c|}{ Debit } & \multicolumn{2}{|c|}{ Credit } \\ \hline Beginning balance & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}