80.2K

Verified Solution

Link Copied!

The following information applies to the questions displayed below.]

Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the companys 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 companys 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:

1. Raw materials were purchased on account, $690,000.
2. Raw materials used in production, $641,800. All of of the raw materials were used as direct materials.
3. The following costs were accrued for employee services: direct labor, $530,000; indirect labor, $150,000; selling and administrative salaries, $308,000.
4. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $457,000.
5. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $430,000.
6. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.
7. Jobs costing $1,703,300 to manufacture according to their job cost sheets were completed during the year.
8. Jobs were sold on account to customers during the year for a total of $3,510,000. The jobs cost $1,713,300 to manufacture according to their job cost sheets.

Required information [The following information applies to the questions displayed below.] Bunnell Corporation is a manufacturer that uses joborder costing. On January 1 , the company's inventory balances were as follows: The company applies overhead cost to jobs on the basis of direct laborhours. 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 accoun $690,000. b. Raw materials used ir production, $641,800 All of of the raw materials were used c direct materials. c. The following costs were accrued for employee services: direct labor, $530,000 indirect labor, \$150,00 selling and administrative salarie: $308,000. d. Incurred various sellir and administrative expenses (e.g., advertising, sales trav costs, and finished goods warehousing), $457,000. e. Incurred various manufacturing overh costs (e.g., depreciati, insurance, and utilitie: $430,000. f. Manufacturing overhe cost was applied to f. 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 $1,703,300 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 $3510000. The Required information [The following information applies to the questions displayed below.] Bunnell Corporation is a manufacturer that uses joborder costing. On January 1 , the company's inventory balances were as follows: The company applies overhead cost to jobs on the basis of direct laborhours. 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 accoun $690,000. b. Raw materials used ir production, $641,800 All of of the raw materials were used c direct materials. c. The following costs were accrued for employee services: direct labor, $530,000 indirect labor, \$150,00 selling and administrative salarie: $308,000. d. Incurred various sellir and administrative expenses (e.g., advertising, sales trav costs, and finished goods warehousing), $457,000. e. Incurred various manufacturing overh costs (e.g., depreciati, insurance, and utilitie: $430,000. f. Manufacturing overhe cost was applied to f. 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 $1,703,300 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 $3510000. The

Answer & Explanation Solved by verified expert

See Answer