Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $ 63,000 $ 22,200 $ 52,500 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 $11.50 per direct labor-hour was based on a cost formula that estimated $460,000 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, $618,000. b. Raw materials used in production, $569,400. All of of the raw materials were used as direct materials, c. The following costs were accrued for employee services: direct labor, $410,000; indirect labor, $150,000; selling and administrative salaries, $338,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing). $382,000. e. Incurred various manufacturing overhead costs (e.g.. depreciation, insurance, and utilities), $310,000. 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 $1,372,600 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 $3,202,500. The jobs cost $1,382,600 to manufacture according to their job cost sheets. Required: 1. What is the journal entry to record raw materials used in production? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the raw materials used in production. Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit View general Journal 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 $ 63,000 $ 22,200 $ 52,500 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 $11.50 per direct labor-hour was based on a cost formula that estimated $460,000 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, $618,000. b. Raw materials used in production, $569,400. All of of the raw materials were used as direct materials, c. The following costs were accrued for employee services: direct labor, $410,000; indirect labor, $150,000; selling and administrative salaries, $338,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing). $382,000. e. Incurred various manufacturing overhead costs (e.g.. depreciation, insurance, and utilities), $310,000. 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 $1,372,600 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 $3,202,500. The jobs cost $1,382,600 to manufacture according to their job cost sheets. Required: 1. What is the journal entry to record raw materials used in production? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the raw materials used in production. Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit View general Journal
Expert Answer:
Answer rating: 100% (QA)
Given the information youve provided we can perform the following calculations 1 Journal entry for raw materials used in production Debit Work in Proc... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials............................$40,000 Work in...
-
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials,...
-
The Jordan Corporation is a manufacturer of heavy-duty trucks. Because of a low internal profitability rate and lack of favorable investment opportunities in the existing line of business, Jordan is...
-
Two wheels A and B have masses m A and m B and radii of gyration about their central vertical axes of k A and k B respectively. If they are freely rotating in the same direction at A and about the...
-
Kristine bought a Rocky Mountain Chocolate Factory franchise. Her franchise agreement required her to purchase a cash register that cost $3,000, with an annual maintenance fee of $773. The agreement...
-
Consider the following balance sheet and income statement for Metro Eagle Outfitters, in condensed form, including some information from the cash flow statement: Required Calculate the following...
-
The following table summarizes visits to emergency departments at four hospitals in Arizona. People may leave without being seen by a physician, and those visits are denoted as LWBS. The remaining...
-
Chris Rock has prepared the following list of statements about depreciation. 1. Depreciation is a process of asset valuation, not cost allocation. 2. Depreciation provides for the proper matching of...
-
The Fielding Company is preparing its cash payments budget. The following items relate to cash payments the company anticipates making during the second quarter of the upcoming year. (Click the icon...
-
Refer to Figure 2-30 and the discussion about updating master files from transaction files. The discussion presents the record structures for a sales transaction. Prepare a diagram (similar to Figure...
-
Suppose you travel from Los Angeles to Las Vegas on a self-driving car. Before the trip, you program the car to keep the speed a constant value randomly chosen between 30 to 60 miles per hour. You...
-
How do the fundamental principles of heat conduction, convection, and radiation govern the intricate thermal dynamics within diverse engineering systems, ranging from nuclear reactors and aerospace...
-
Compare and contrast Ideation Theory and Communication for Persuasion Theory.Highlight the key elements, strengths, and limitations of each theory, and provide an example of how each theory has been...
-
The Audio Partners team has called a meeting to discuss financial matters and has asked you to prepare a slide presentation that explains the purpose of time value in money in finance and how time...
-
How do advancements in materials science and nanotechnology enable the development of novel heat transfer enhancement techniques, such as nanostructured surfaces, phase-change nanofluids, and thermal...
-
1. 2. 3. Step 2: Create a New Thread for Your Initial Post by Wednesday at 11:59pm EST Respond to the following prompts in your initial post: Describe the strengths and weaknesses of the sender's...
-
Unathi borrowed R2000 from Fikile because Unathi was struggling to pay his rent for the month. This means that Unathi owes Fikile R2000. However, Fikile also owes Unathi R1500, because he bought a...
-
The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the...
-
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospitals lab. Charges for lab tests are consistently higher at Valley View than at other...
-
Tuf-Stuff, Inc., sells a wide range of drums, bins, boxes, and other containers that are used in the chemical industry. One of the company's products is a heavy-duty corrosion-resistant metal drum,...
-
Wilderness Products, Inc., has designed a self-inflating sleeping pad for use by backpackers and campers. The following information is available about the new product: a. An investment of $1,350,000...
-
Describe a job in which you think an employee recognition program might be an effective means for changing and improving employee behaviour. Explain how you would design the program and how you would...
-
Describe a situation in which you think an employer could use organizational behaviour modification and an employee recognition program to improve or correct employee behaviour. Can you anticipate...
-
A supervisor in a textile factory observes that one of her employees is violating a safety rule that could result in severe injury. What combination of reinforcement, punishment, and extinction could...
Study smarter with the SolutionInn App