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 $ 86,500 $ 22,600 $ 63,900 The company applies overhead cost to jobs using direct labor-hours. For this year, the company's predetermined overhead rate of $15.00 per direct labor-hour was based on a cost formula that estimated $600,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded this year: a. Raw materials were purchased on account, $632,000. b. Raw materials used in production, $585,600. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $550,000; indirect labor, $150,000; selling and administrative salaries, $328,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $375,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $450,000. 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 $1,670,300 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 $3,172,500. The jobs cost $1,680,300 to manufacture according to their job cost sheets. 7. What is the ending balance in Work in Process? Work in Process Debit Credit Beginning balance < Prev 7 8 9 110 of 10 Next >
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 $ 86,500 $ 22,600 $ 63,900 The company applies overhead cost to jobs using direct labor-hours. For this year, the company's predetermined overhead rate of $15.00 per direct labor-hour was based on a cost formula that estimated $600,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded this year: a. Raw materials were purchased on account, $632,000. b. Raw materials used in production, $585,600. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $550,000; indirect labor, $150,000; selling and administrative salaries, $328,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $375,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $450,000. 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 $1,670,300 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 $3,172,500. The jobs cost $1,680,300 to manufacture according to their job cost sheets. 7. What is the ending balance in Work in Process? Work in Process Debit Credit Beginning balance < Prev 7 8 9 110 of 10 Next >
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter10: Accounting Systems For Manufacturing Operations
Section: Chapter Questions
Problem 10.10E: Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses...
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