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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:
The company applies overhead cost to jobs using direct labor-hours. For this year, the company's predetermined
overhead rate of $12.00 per direct labor-hour was based on a cost formula that estimated $480,000 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, $696,000.
b. Raw materials used in production, $655,400. All of of the raw materials were used as direct materials.
c. The following costs were accrued for employee services: direct labor, $430,000; indirect labor, $150,000; selling and
administrative salaries, $251,000.
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods
warehousing), $411,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $330,000.
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 $1,521,800 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 $3,255,000. The jobs cost $1,531,800 to
manufacture according to their job cost sheets.
What is the ending balance in Finished Goods?
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
$50,000 $30,800 $43,200
The company applies overhead cost to jobs using direct labor-hours.For this year,the company's predetermined overhead rate of $12.00 per direct labor-hour was based on a cost formula that estimated $480,000 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,$696,000. b.Raw materials used in production.$655,400.All of of the raw materials were used as direct materials
administrative salaries,$251,000
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing,$411,000 e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $330,000. f. Manufacturing overhead cost was applied to production.The company actually worked 41,ooo direct labor-hours on all jobs during the year. g. Jobs costing $1,521,800 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 $3,255,000.The jobs cost $1,531,800 to manufacture according to their job cost sheets
12.What is the ending balance in Finished Goods?
Finished Goods
Debit
Credit
Beginning balance
Ending balance
