Question

Required information The Foundational 15 (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 Work in process Pinished goods $48.000 $ 19,400 $ 56,100 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 $14.75 per direct labor-hour was based on a cost form that estimated $590,000 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, $590,000. b. Raw materials used in production, $546,400. All of of the raw materials were used as direct materials C. The following costs were accrued for employee services: direct labor. $540,000; indirect labor, $150,000; selling and administrative salaries, $250,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing). $394,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities). $440,000, 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 $1,610,950 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 $3,082,500. The Jobs cost $1,620,950 to manufacture according to their job cost sheets. Foundational 3-11 11. What is the journal entry to record the cost of goods sold referred to in item h above? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Journal entry

date	account and explanation	Debit	credit
	Cost of goods sold	1620950
	Finished goods		1620950
	(To record cost of goods sold)