Requirea intormation The Foundational 15 (Algo) [LO3-1, LO3-2, LO3-3, LO3-4] [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 $ 66,000 $ 33,600 $ 38,400 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 $13.50 per direct labor-hour was based on a cost formula that estimated $540,000 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, $684,000. b. Raw materials used in production, $646,400. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $490,000; Indirect labor, $150,000; selling and administrative salaries, $319,000. d. Incurred various selling and adminitrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $423,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, Insurance, and utilities), $390,000. 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 $1,623,300 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 $3,547,500. The Jobs cost $1,633,300 to manufacture according to their job cost sheets.
Requirea intormation The Foundational 15 (Algo) [LO3-1, LO3-2, LO3-3, LO3-4] [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 $ 66,000 $ 33,600 $ 38,400 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 $13.50 per direct labor-hour was based on a cost formula that estimated $540,000 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, $684,000. b. Raw materials used in production, $646,400. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $490,000; Indirect labor, $150,000; selling and administrative salaries, $319,000. d. Incurred various selling and adminitrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $423,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, Insurance, and utilities), $390,000. 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 $1,623,300 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 $3,547,500. The Jobs cost $1,633,300 to manufacture according to their job cost sheets.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter10: Accounting Systems For Manufacturing Operations
Section: Chapter Questions
Problem 10.10E: Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses...
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Question
I only need answers for questions 13 and 14
![Requirea intormation
The Foundational 15 (Algo) [LO3-1, LO3-2, LO3-3, LO3-4]
[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
$ 66,000
$ 33,600
$ 38,400
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 $13.50 per direct labor-hour was based on a cost formula that estimated $540,000 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, $684,000.
b. Raw materials used in production, $646,400. All of of the raw materials were used as direct materials.
C. The following costs were accrued for employee services: direct labor, $490,000; Indirect labor, $150,000; selling and
administrative salaries, $319,000.
d. Incurred varlous selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods
warehousing), $423,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $390,000.
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 $1,623,300 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 $3,547,500. The jobs cost $1,633,300 to
manufacture according to their job cost sheets.
Foundational 3-13 (Algo)
13. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of
goods sold for the year?
Answer is complete but not entirely correct.
Adjusted cost of goods sold
$ 1,646,800 8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f61e626-7d33-482f-bf18-423884fdaa73%2Fc31a980d-47e1-435f-88d1-8dcaf25faaa0%2Fwylx7cr_processed.png&w=3840&q=75)
Transcribed Image Text:Requirea intormation
The Foundational 15 (Algo) [LO3-1, LO3-2, LO3-3, LO3-4]
[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
$ 66,000
$ 33,600
$ 38,400
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 $13.50 per direct labor-hour was based on a cost formula that estimated $540,000 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, $684,000.
b. Raw materials used in production, $646,400. All of of the raw materials were used as direct materials.
C. The following costs were accrued for employee services: direct labor, $490,000; Indirect labor, $150,000; selling and
administrative salaries, $319,000.
d. Incurred varlous selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods
warehousing), $423,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $390,000.
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 $1,623,300 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 $3,547,500. The jobs cost $1,633,300 to
manufacture according to their job cost sheets.
Foundational 3-13 (Algo)
13. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of
goods sold for the year?
Answer is complete but not entirely correct.
Adjusted cost of goods sold
$ 1,646,800 8
![Required Informatlon
The Foundational 15 (Algo) [LO3-1, LO3-2, LO3-3, LO3-4]
[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
$ 66,000
33,600
$ 38,400
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 $13.50 per direct labor-hour was based on a cost formula that estimated $540,000 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, $684,o00.
b. Raw materlals used in production, $646,400. All of of the raw materlals were used as direct materials.
c. The following costs were accrued for employee services: direct labor, $490,000; Indirect labor, $150,000; selling and
administrative salaries, $319,000.
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods
warehousing), $423,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $390,000.
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 $1,623,300 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 $3,547,500. The jobs cost $1,633,300 to
manufacture according to their job cost sheets.
Foundational 3-14 (Algo)
14. What is the gross margin for the year?
Answer is complete but not entirely correct.
Gross margin
$ 1,914,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f61e626-7d33-482f-bf18-423884fdaa73%2Fc31a980d-47e1-435f-88d1-8dcaf25faaa0%2F0mg69tl_processed.png&w=3840&q=75)
Transcribed Image Text:Required Informatlon
The Foundational 15 (Algo) [LO3-1, LO3-2, LO3-3, LO3-4]
[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
$ 66,000
33,600
$ 38,400
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 $13.50 per direct labor-hour was based on a cost formula that estimated $540,000 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, $684,o00.
b. Raw materlals used in production, $646,400. All of of the raw materlals were used as direct materials.
c. The following costs were accrued for employee services: direct labor, $490,000; Indirect labor, $150,000; selling and
administrative salaries, $319,000.
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods
warehousing), $423,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $390,000.
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 $1,623,300 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 $3,547,500. The jobs cost $1,633,300 to
manufacture according to their job cost sheets.
Foundational 3-14 (Algo)
14. What is the gross margin for the year?
Answer is complete but not entirely correct.
Gross margin
$ 1,914,200
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