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ID: 2333701 • Letter: E
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ework 0 Required Information The following information applies to the questions displayed below Bunnell Corporation is a manufacturer that uses job-order costing On Jenuary 1, the company's Inventory balances wene as follows: Rav materials Work in process$18,000 Pinished goods 35,000 40,000 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 use 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, ndirect labor, $150,000, selling and administrative salaries, $240,000. d. Incurred various selling g nd dministrative expenses (eg. advertising, sales travel costs, and finished goods warehousing), $367,000. e Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utlities), $500,000. f rked 41000 direct labor-hours on all t. Manufacturing overhead cost was applied to production. The company actually wo 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. 3 What is the journal entry to record the labor costs incurred during the year? (f no entry is required for a transaction/event, select "No journal entry required" in the first account field.) MacBook Air P-11 3Explanation / Answer
4) Manufacturing overhead applied ($11.75*41,000 DLH's) (41000*16.25) 666250 answer 5) Total manufacturing cost added during the year Direct materials 480,000 Direct labor 600,000 overhead applied 666,250 Total. 1,746,250 total manufacturing cost 1,746,250 answer 6) Transaction General Journal Debit Credit g. Finished goods inventory 1,680,000 Work in process inventory 1,680,000 7) Work in process Beg.bal 18,000 1,680,000 g. b. 480,000 c. 600,000 f. 666,250 End bal 84,250
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