3. What is the journal entry to record the labor costs incurred during the year? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction liat Journal entry worksheet Record the accrued labor costs. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View peneral journal 4. What is the total amount of manufacturing overhead applied to production during the year? Manufacturing overhead applied 5. What is the total manufacturing cost added to Work in Process during the year? Total manufacturing cost
3. What is the journal entry to record the labor costs incurred during the year? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction liat Journal entry worksheet Record the accrued labor costs. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View peneral journal 4. What is the total amount of manufacturing overhead applied to production during the year? Manufacturing overhead applied 5. What is the total manufacturing cost added to Work in Process during the year? Total manufacturing cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
The Foundational 15 (Static) [(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:
$ 40,000
$ 18,000
$ 35,000
Raw materials
Work in process
Finished goods
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 used 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 (e.g., depreciation, insurance, and utilities), $500,000.
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 $1,680,000 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.
3. What is the journal entry to record the labor costs incurred during the year? (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
Record the accrued labor costs.
Note: Enter debits before credits
Transaction
General Journal
Debit Credit
Record entry
Clear entry
View general journal
4. What is the total amount of manufacturing overhead applied to production during the year?
Manufacturing overhead applied
5. What is the total manufacturing cost added to Work in Process during the year?
Total manufacturing cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe8c8790d-5d93-4219-b938-1c16754b026b%2F88710c2f-9cfd-4f63-948e-fa55f535da55%2F7vmdgu_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
The Foundational 15 (Static) [(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:
$ 40,000
$ 18,000
$ 35,000
Raw materials
Work in process
Finished goods
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 used 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 (e.g., depreciation, insurance, and utilities), $500,000.
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 $1,680,000 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.
3. What is the journal entry to record the labor costs incurred during the year? (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
Record the accrued labor costs.
Note: Enter debits before credits
Transaction
General Journal
Debit Credit
Record entry
Clear entry
View general journal
4. What is the total amount of manufacturing overhead applied to production during the year?
Manufacturing overhead applied
5. What is the total manufacturing cost added to Work in Process during the year?
Total manufacturing cost
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