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 | $ | 60,500 | |
Work in process | $ | 20,800 | |
Finished goods | $ | 57,600 | |
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 $11.25 per direct labor-hour was based on a cost formula that estimated $450,000 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, $622,000.
b) Raw materials use in production, $591,800. All of of the raw materials were used as direct materials.
c) The following costs were accrued for employee services: direct labor, $400,000; indirect labor, $150,000; selling and administrative salaries, $280,000.
d) Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $400,000.
e) Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $300,000.
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 $1,360,750 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 $3,330,000. The jobs cost $1,370,750 to manufacture according to their job cost sheets.
1) | Transaction | General Journal | Debit | Credit | ||||
b. | Work in process inventory | 591,800 | ||||||
Raw materials inventory | 591,800 | |||||||
2) | Ending balance in Raw Materials | |||||||
Raw materials | ||||||||
Beg.bal | 60,500 | |||||||
a. | 622,000 | 591,800 | b. | |||||
End bal | 90,700 | |||||||
3) | Transaction | General Journal | Debit | Credit | ||||
c. | Work in process inventory | 400,000 | ||||||
Manufacturing overhead | 150,000 | |||||||
Selling & administrative salaries | 280,000 | |||||||
Factory wages payable | 830,000 | |||||||
4) | Manufacturing overhead applied | (41000*11.25) | 461250 | answer | ||||
5) | Total manufacturing cost added during the year | |||||||
Direct materials | 591,800 | |||||||
Direct labor | 400,000 | |||||||
overhead applied | 461,250 | |||||||
Total. | 1,453,050 | |||||||
total manufacturing cost | 1,453,050 | answer | ||||||
6) | Transaction | General Journal | Debit | Credit | ||||
g. | Finished goods inventory | 1,360,750 | ||||||
Work in process inventory | 1,360,750 | |||||||
7) | Work in process | |||||||
Beg.bal | 20,800 | 1,360,750 | g. | |||||
b. | 591,800 | |||||||
c. | 400,000 | |||||||
f. | 461,250 | |||||||
End bal | 113,100 | |||||||
8) | total actual manufacturing overhead cost | 450,000 | answer | |||||
indirect labor | 150000 | |||||||
Various manfuacturing cost | 300,000 | |||||||
total | 450000 | |||||||
9) | overapplied overhead | 11,250 | answer | |||||
10) | Cost of goods available for sale | 1,418,350 | answer | |||||
(57600+1,360,750) | ||||||||
11) | Transaction | General Journal | Debit | Credit | ||||
h. | cost of good sold | 1,370,750 | ||||||
Finished goods inventory | 1,370,750 | |||||||
12) | Finished goods | Finished Goods | ||||||
Beg.bal | 57,600 | |||||||
g. | 1,360,750 | 1,370,750 | h. | |||||
End bal | 47,600 | |||||||
13) | Adjusted cost of goods sold | 1,359,500 | ||||||
(1,370,750-11250) | ||||||||
14) | Gross margin | 1,970,500 | ||||||
(sales - adjusted cost of goods sold) | ||||||||
15) | Net operating income | 1,290,500 | answer | |||||
Gross margin | 1,970,500 | |||||||
less | ||||||||
Selling & adm salaries | -280,000 | |||||||
Various selling & adm | -400,000 | |||||||
Net operating income | 1,290,500 |
Required information [The following information applies to the questions displayed below.] Bunnell Corporation is a manufacturer...
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 $ 63,500 $ 32,000 $ 36,000 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 $13.00 per direct labor-hour was based on a cost formula that estimated $520,000 of...
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: $50,500 Raw materials Work in process Finished goods $25,000 $38,100 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 $11.75 per direct labor-hour was based on a cost formula that estimated $470,000 of total manufacturing overhead...
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REQUIREMENT 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: $50,500 Raw materials Work in process Finished goods $25,000 $38,100 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 $11.75 per direct labor-hour was based on a cost formula that estimated $470,000 of total manufacturing...
REQUIREMENT 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: $50,500 Raw materials Work in process Finished goods $25,000 $38,100 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 $11.75 per direct labor-hour was based on a cost formula that estimated $470,000 of total manufacturing...
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...
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 $ 75,500 $ 19,600 $ 59,400 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 $14.00 per direct labor-hour was based on a cost formula that estimated $560,000 of...
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 $ 75,500 $ 19,600 $ 59,400 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 $14.00 per direct labor-hour was based on a cost formula that estimated $560,000 of...
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...
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