Question

The Foundational 15 [LO3-1, LO3-2, LO3-3, LO3-4]

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Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows:

Raw materials	$	62,500
Work in process	$	23,200
Finished goods	$	36,900

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 $11.00 per direct labor-hour was based on a cost formula that estimated $440,000 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, $694,000.
2. Raw materials used in production, $644,800. All of of the raw materials were used as direct materials.
3. The following costs were accrued for employee services: direct labor, $390,000; indirect labor, $150,000; selling and administrative salaries, $246,000.
4. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $430,000.
5. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $290,000.
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 $1,403,100 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 $2,827,500. The jobs cost $1,413,100 to manufacture according to their job cost sheets.
   Connect + Paused e ezto.mheducation.com/ext/map/index.html?_con-con&external_browser-O&launchUrl-https%253A%252F%252Fnewconnect.mheducation... ☆ b Suggested Sites Customize Links Shopity S02L - Michigan Stat.. Oberlo Google Play P Plobal SoundCloud YouTube CC OneDrive Apps Q Study 15 Terms So.. Other bookmarks Ch 3 Foundational 15 Savoc Help Save & Exit Submit 3 Check my work 2 h. Jobs were sold on account to customers during the year for a total of $2,827,500. The jobs cost $1.413,100 to manufacture according to their job cost sheels. Part 2 of 15 Foundational 3-2 0.33 points 2. What is the ending balance in Raw Materials? Raw Materials 03:18:07 Bey Bal cBook End, Hai 01 0 0 References Mc Graw HINI < Prev 2 3 4 15 of 15 Next > Type here to search O E 92% 8:40 PM 9/25/2020
   

Answer 1

Ending balance of Raw material
RAW MATERIAL INVENTORY
			Debit $	Credit $
Beginning balance		62,500
Accounts payable		6,94,000	6,44,800	Work in process inventory
Ending balance		1,11,700
Answer is $ 111,700