The Foundational 15 [LO3-1, LO3-2, LO3-3, LO3-4] [The following information appl

Question

The Foundational 15 [LO3-1, LO3-2, LO3-3, LO3-4] [The following information applies to the questions displayed belowj Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Part 7 of 15 Raw materials $79,000 Work in process Finished $37,200 goods $25,600 0.2 points 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 $12.25 per direct labor-hour was based on a cost formula that estimated $490,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor hours. The following transactions were recorded for the year: eBook a. Raw materials were purchased on account, $690,000 b. Raw materials use in production, $660,000. All of of the raw materials were used as direct materials c. The following costs were accrued for employee services: direct labor, $440,000; indirect labor, $150,000; selling and administrative salaries, $260,000 d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $462,000 e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $340,000. f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct g. Jobs costing $1,542,950 to manufacture according to their job cost sheets were completed during the h Jobs were sold on account to customers during the year for a total of $3,172,500. The jobs cost labor-hours on all jobs during the year. year $1,552,950 to manufacture according to their job cost sheets Foundational 3-7 7. What is the ending balance in Work in Process? ork in Process Beg. Bal End. Bal 0 0

Explanation / Answer

7)

So answer is $84900

8)

Work in process inventory Beg Bal 25600 Finished goods 1542950 Direct material 660000 Direct labour 440000 Overhead applied (12.25*41000) 502250 End bal 84900

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