! Required information [The following information applies to the questions displayed below.] Bunnell Corporation is a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
! 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. 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. 14. What is the gross margin for this year? Gross margin ! 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. 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. 14. What is the gross margin for this year? Gross margin
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
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...
-
A USA bank faces the following market conditions, 3 monthscertificate of deposit (CD) rate is 18%p.a. The federal depositinsurance stand at 0.037%. the federal CDreserve requirement is 6%. The 3 mo 2...
-
The three factors that must exist for a person to commit fraud include ______, _____ , and ______. 1 answer
-
You have a project to build a new fence. The fence is four sided as shown below. Each side is to take one day to build and is budgeted for $1,000 per side. The sides are planned to be completed one...
-
Why are external failure costs generally the highest of the costs of quality (COQ)?
-
For the manufacture of vinyl chloride, assemble a preliminary database. This should include thermophysical property data, MSDSs for each chemical giving toxicity and flammability data, and the...
-
Describe two ways that a balanced scorecard may be superior to more traditional monitoring systems.
-
Kristen, the president and sole shareholder of Egret Corporation, has earned a salary bonus of $30,000 for the current year. Because of the lower tax rates on qualifying dividends, Kristen is...
-
Apply the following row operation to the matrix: - 3 5 -9 4 4 -10 -6 1 4 - 21 -6 8 1-2 Replace R, by - 7R + R 3
-
When the cashier asks, "Debit or Credit" a sneaky little bank fee sometimes hangs in the balance, depending on where you bank and sometimes what kind of debit card account you have. Carolyn...
-
1.You purchase 4 different pieces of fabric. The first is 3 yards long, the second is 2 1/3 yards, the third is 1 yards and the last is 4 yards long. What is the total number of yards purchased?...
-
What are 2 pros and 2 cons ofactivity-basedcosting? Can you give me examples of situations where activity-basedcosting could be used effectively and why?
-
Find all relative maxima and minima of the following function. 3 f(x) = 4x - 3x- 18x+17 f(x) has a relative maximum at the point and a relative minimum at the point ( _). In other words, f(x) has a...
-
Given the following data, compute equivalent units of production for conversion costs: Beginning Work in Process-8,000 units, 40% complete Units Completed and Transferred Out-90,000 units Ending Work...
-
Al Harris was particularly glad to have an opportunity to visit with Mildred Frazier. Al had been selling mutual funds for the last five years, and he believed he was about to make his best sale of...
-
Why is it important to understand the type of data you are working with? Select an answer: The type of data you are working with will determine the chart you need. If the type of data is extremely...
-
Complete the following acid-base reactions: (a) HCCH + NaH
-
Research evidence suggests that, in practice, a cost-plus approach influences many pricing decisions. Required: What is meant by cost-plus pricing and what are the problems of using this approach? E-1
-
Jerry and Co. is a large computer consultancy business that has a division specialising in robotics. Can you identify three non-financial measures that might be used to help assess the performance of...
-
What are the reasons for holding inventories? Are these reasons different from the rea- sons for holding cash? R-3
Study smarter with the SolutionInn App