Saved Help 6 Bunnell Corporation is a manufacturer that uses job-order costing.

Question

Saved Help 6 Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows Rav materials 63, 500 Work in process 32,000 Finished goods 36,000 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's total manufacturing overhead for an recorded for the year per direct labor-hour was based on a cost formula that estimated $520,000 of estimated activity level of 40,000 direct labor-hours. The following transactions were a Raw materials were purchased on account, $584.000 b. Raw materials use in production, $537600 All of of the raw materials were used as direct materials c The following costs were accrued for employee services direct labor, $470,000; indirect labor, $150,000, selling and administrative salaries, $249,000 d Incurred various seling and administrative expenses (eg advertising, sales travel costs, and finished goods warehousing). $464,000 e Incurred various manufacturing overhead costs (e.g. depreciation, insurance, and utilities). $370,000 t. Manufacturing overhead cost was applied to production. The company actually worked 41000 direct labor-hours on all jobs during the year o. Jobs costina $1.478.700 to manufacture accordina to their iob cost sheets were completed durinc the vear Prey 3 41 17 Next> Firefox in a while De you want to clean it up for a fresh, lke-new esperiencet And by the w, welcomme back

Explanation / Answer

3) Transaction                    General Journal                                       Debit Credit c. Work in process inventory 470,000 Manufacturing overhead 150,000 Selling & administrative salaries 249,000 Factory wages payable 869,000 4) Manufacturing overhead applied ($13*41,000 DLH's) (41000*13.00) 533000 answer 5) Total manufacturing cost added during the year Direct materials 537,600 Direct labor 470,000 overhead applied 533,000 Total. 1,540,600 total manufacturing cost 1,540,600 answer 6) Transaction                    General Journal                                       Debit Credit g. Finished goods inventory 1,478,700 Work in process inventory 1,478,700

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