1. Business
  2. Accounting
  3. bunnell corporation is a manufacturer that uses joborder costing on...

Question: bunnell corporation is a manufacturer that uses joborder costing on...

Question details

Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the companys inventory balances were as follows: Raw materialsS Work in process 25,000 Finished goods38,100 ş 50,500 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the companys predetermined overhead rate of $11.75 per direct labor-hour was based on a cost formula that estimated $470,000 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, $592,000. b. Raw materials use in production, $557,000. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $420,000; indirect labor, $150,000; selling and administrative salaries, $295,000 d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $381,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $320,000. f. Manufacturing overhead cost was applied to production. The company actually worked 41,000iect labor-hours on all jobs during the year. g. Jobs costing $1,399,450 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 $2,925,000. The jobs cost $1,409,450 to manufacture according to their job cost sheetsRequired 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.) View transaction list Journal entry worksheet Record the raw materials used in production Note: Enter debits before credits. Transaction General Journal Debit Credit2. What is the ending balance in Raw Materials? Raw Materials Beg. Bal. End. Bal.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.) iew transaction list Journal entry worksheet Record the accrued labor costs. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal4. What is the total amount of manufacturing overhead applied to production during the year? Manufacturing overhead applied5. What is the total manufacturing cost added to Work in Process during the year? Total manufacturing cost6. 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.) View transaction list Journal entry worksheet Record the manufactured goods completed during this year. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution