Question

Check my work 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 $ 40,00 $18,000 $ 35,000 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 $16 25 per direct labor-hour was based on a cost formula that estimated $650,000 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, $510,000 b. Raw materials use in production, $480,000. All of of the raw materials were used as direct materials c. The following costs were accrued for employee services: direct labor, $600,000, indirect labor, $150,000, selling and administrative salaries. $240,000. d. Incurred various selling and administrative expenses (eg, advertising, sales travel costs, and finished goods warehousing). $367000. e incurred various manufacturing overhead costs (eg. depreciation, insurance, and utilities). $500,000 f Manufacturing overhead cost was applied to production. The company actually worked 41000 direct labor hours on all jobs during the year. g. Jobs costing $1680,000 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 $2.800,000. The jobs cost $1,690,000 to manufacture according to their job cost sheets < Prev 12 13 14 15 of 15 !!! Next >

Answer 1

12) Ending balance in finished goods

Beg Bal	35000	Cost of goods sold	1690000
work in process	1680000
End Bal	25000