Chapter 3, Problem 10F15

Bunnell Corporation is a manufacturer tint uses job-order costing. On January 1, the company's inventory balances were as follow:

The company applies overhead cost to jobs on the basis of direct labor-hours. For the current, the company s predetermined overbeat rate of $165,000 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, S4S0.000. All 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 fished goods $367,000.
e. manufacturing overhead costs (e.g., depreciation, insurance. and utilities), $500,000.
Manufacturing overhead cost was applied to production. The company actually worked 41 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.
Required:
10. What is the cost of goods available for sale during year?