[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 $ 50,500 $ 25,000 $ 38,100 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 $11.75 per direct labor-hour was based on a cost formula that estimated $470,000 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, $592,000. b. Raw materials used in production, $557,000. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $420,000; Indirect labor, $150,000; selling and administrative salaries, $295,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $381,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $320,000. 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 $1,399,450 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 $2,925,000. The jobs cost $1,409,450 to manufacture according to their job cost sheets. Required: What is the journal entry to record raw materials used in production? (If no entry is required for a transaction/event, select "No ournal entry required" in the first account field.)
[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 $ 50,500 $ 25,000 $ 38,100 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 $11.75 per direct labor-hour was based on a cost formula that estimated $470,000 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, $592,000. b. Raw materials used in production, $557,000. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $420,000; Indirect labor, $150,000; selling and administrative salaries, $295,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $381,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $320,000. 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 $1,399,450 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 $2,925,000. The jobs cost $1,409,450 to manufacture according to their job cost sheets. Required: What is the journal entry to record raw materials used in production? (If no entry is required for a transaction/event, select "No ournal entry required" in the first account field.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 9E: Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the...
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![[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
$ 50,500
$ 25,000
$ 38,100
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 $11.75 per direct labor-hour was based on a cost formula that estimated $470,000 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, $592,000.
b. Raw materials used in production, $557,000. All of of the raw materials were used as direct materials.
c. The following costs were accrued for employee services: direct labor, $420,000; Indirect labor, $150,000; selling and
administrative salaries, $295,000.
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods
warehousing), $381,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $320,000.
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 $1,399,450 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 $2,925,000. The jobs cost $1,409,450 to
manufacture according to their job cost sheets.
Required:
What is the journal entry to record raw materials used in production? (If no entry is required for a transaction/event, select "No
ournal entry required" in the first account field.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ea1f414-2cfa-4d12-9b16-9c9fcbba0754%2F17bbe36a-b18c-4248-9a18-597bdc735ca9%2F6aie0h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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
$ 50,500
$ 25,000
$ 38,100
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 $11.75 per direct labor-hour was based on a cost formula that estimated $470,000 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, $592,000.
b. Raw materials used in production, $557,000. All of of the raw materials were used as direct materials.
c. The following costs were accrued for employee services: direct labor, $420,000; Indirect labor, $150,000; selling and
administrative salaries, $295,000.
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods
warehousing), $381,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $320,000.
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 $1,399,450 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 $2,925,000. The jobs cost $1,409,450 to
manufacture according to their job cost sheets.
Required:
What is the journal entry to record raw materials used in production? (If no entry is required for a transaction/event, select "No
ournal entry required" in the first account field.)
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