50.1K

Verified Solution

Link Copied!

Required information The Foundational 15 (Algo) (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 $ 74,000 Work in process $ 31,800 Finished goods $ 52,200 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 $14.50 per direct labor hour was based on a cost formula that estimated $580,000 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, $690,000 b. Raw materials used in production, $641,800. All of of the raw materials were used as direct materials c. The following costs were accrued for employee services direct labor, $530,000; indirect labor, $150,000; selling and administrative salaries, $308,000. d. Incurred various selling and administrative expenses (eg, advertising, sales travel costs, and finished goods warehousing). $457.000 e. Incurred various manufacturing overhead costs (eg, depreciation, Insurance, and utilities). $430,000 1. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all Jobs during the year. g. Jobs costing $1703,300 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 $3,510,000. The jobs cost $1713,300 to manufacture according to their job cost sheets. Foundational 3-8 (Algo) 8. What is the total amount of actual manufacturing overhead cost incurred during the year? Total actual manufacturing overhead cost nt Foundational 3-9 (Algo) ences 9. Is manufacturing overhead underapplied or overapplied for the year? By how much? Foundational 3-10 (Algo) 10. What is the cost of goods available for sale during the year? Cost of goods available for sale Foundational 3-12 (Algo) 12. What is the ending balance in Finished Goods? Finished Goods s Credit Debit Beginning balance Ending balance

Answer & Explanation Solved by verified expert

See Answer