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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 $ 40,000 $ 18,000 $ 35,000 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 $16.25 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, $480,000. All of the raw materials were used as direct materials. c. Direct labor was incurred by the factory, $600,000. d. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $650,000. e. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all Jobs during the year. f. Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year. g. 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. What is the total manufacturing cost added to Work in Process (DM, DL, OH) during the year? Total manufacturing cost

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 $ 40,000 $ 18,000 $ 35,000 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 $16.25 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, $480,000. All of the raw materials were used as direct materials. c. Direct labor was incurred by the factory, $600,000. d. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $650,000. e. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all Jobs during the year. f. Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year. g. 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. What is the total manufacturing cost added to Work in Process (DM, DL, OH) during the year? Total manufacturing cost

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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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: Raw materials Work in process Finished goods $ 40,000 $ 18,000 $ 35,000 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 $16.25 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, $480,000. All of the raw materials were used as direct materials. c. Direct labor was incurred by the factory, $600,000. d. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $650,000. e. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all Jobs during the year. f. Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year. g. 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. What is the total manufacturing cost added to Work in Process (DM, DL, OH) during the year? Total manufacturing cost
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 $ 40,000 $ 18,000 $ 35,000 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 $16.25 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, $480,000. All of the raw materials were used as direct materials. c. Direct labor was incurred by the factory, $600,000. d. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $650,000. e. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all Jobs during the year. f. Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year. g. 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. What is the total manufacturing cost added to Work in Process (DM, DL, OH) during the year? Total manufacturing cost
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