Bunnell Corporation Is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: S 66,000 $ 33,600 S 38,400 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 $13.50 per direct labor-hour was based on a cost formula that estimated $540,000 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, $684,00o. b. Raw materials used in production, $646,400. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $490,000; Indirect labor, $150,000; selling and administrative salaries, $319,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $423,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, Insurance, and utilities), $390,000. 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 $1,623,300 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 $3,547,500. The Jobs cost $1,633,300 to manufacture according to their job cost sheets. Foundational 3-15 (Algo) 15. What is the net operating income for the year? Answer is complete but not entirely correct. Net operating income s 795,700 8
Bunnell Corporation Is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: S 66,000 $ 33,600 S 38,400 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 $13.50 per direct labor-hour was based on a cost formula that estimated $540,000 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, $684,00o. b. Raw materials used in production, $646,400. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $490,000; Indirect labor, $150,000; selling and administrative salaries, $319,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $423,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, Insurance, and utilities), $390,000. 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 $1,623,300 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 $3,547,500. The Jobs cost $1,633,300 to manufacture according to their job cost sheets. Foundational 3-15 (Algo) 15. What is the net operating income for the year? Answer is complete but not entirely correct. Net operating income s 795,700 8
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need the answer for question 15 please
Transcribed Image Text:Bunnell Corporation Is a manufacturer that uses Job-order costing. On January 1, the company's Inventory balances were
as follows:
$ 66,000
$ 33,600
$ 38,400
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 $13.50 per direct labor-hour was based on a cost formula that estimated $540,000 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, $684,000.
b. Raw materlals used in production, $646,400. All of of the raw materials were used as direct materials.
C. The following costs were accrued for employee services: direct labor, $490,000; Indirect labor, $150,000; selling and
administrative salarles, $319,000.
d. Incurred varlous selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods
warehousing), $423,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation, Insurance, and utilities), $390,000.
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 $1,623,300 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 $3,547,500. The jobs cost $1,633,300 to
manufacture according to their job cost sheets.
Foundational 3-15 (Algo)
15. What is the net operating Income for the year?
Answer is complete but not entirely correct.
Net operating income
795,700
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