Question

Required information [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 Work in process Finished goods $ 59,500 $ 37,600 $ 61,800 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 $14.25 per direct labor-hour was based on a cost formula that estimated $570,000 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, $634.000. b. Raw materials use in production, $598,400. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $520,06o; indirect labor, $150,000; selling and administrative salaries, $337,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing). $461,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities). $420,000. 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 $1,645,750 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 $3,360,000. The jobs cost $1,655,750 to manufacture according to their job cost sheets Required: 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.)

Answer 1

According to the requirement in the question, we have to record the Journal entry in this problem.

In simple terms of Accounting, if we have to record the journal entry for raw material used in production. We have to record a Debit for the cost of materials is made to the Work in Progress inventory Account and a Credit is made to the Raw Materials Account.

Now, we have to proceed with the requirement of the question.

Requirement:- What is the journal entry to record raw material used in production.?

Work in Progress A/c Debit	598400
Raw Materials A/c Credit		598400
(Raw materials used in Production)

Amount is clearly given to us that, Raw material was purchased for $ 634,000 and Raw material is used in production for $ 598,400. (Part b )

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