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The Foundational 15 (Static) (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

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The Foundational 15 (Static) (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 company's inventory balances were as follows: Raw materials Work in proces Finished goods $ 40,000 $ 18,000 $ 35,000 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 $16.25 per direct labor-hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: a. Raw materials were purchased on account, $510,000. b. Raw materials used in production, $480,000. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $600,000; indirect labor, $150,000, selling and administrative salaries, $240,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing). $367,000. e. Incurred various manufacturing overhead costs (e.g.. depreciation, insurance, and utilities), $500,000 f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on jobs during the year. g. Jobs costing $1,680,000 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 $2,800,000. The jobs cost $1,690,000 to manufacture according to their job cost sheets! manufacture according to their job cost sheets. Foundational 3-12 (Static) 12. What is the ending balance in Finished Goods? Finished Goods Credit Debit Beginning balance Ending balance

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