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 $ 40,000 $ 18,000 $ 35,000 ces 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 (e.g., advertising, sales travel costs, and finished goods warehousing). $367,000. 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 $1,680,000 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 Prey 1 2 3 5 of 5 Next >

Answer 1

Journal entry

No	General Journal	Debit	Credit
	Work in process	600000
	Manufacturing overhead	150000
	Selling and administrative expense	240000
	Wages payable		990000
	(To record accrued labor)