Bowen Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard costsystem. Its predetermined overhead rate includes $1,000,000 of fixed overhead in the numerator and 50,000 direct labor-hours in thedenominator. The company purchased (with cash) and used 46,000 yards of raw materials at a cost of $11.20 per yard. Its directlaborers worked 20,700 hours and were paid a total of $291,400. The company started and completed 9,500 units of finished goodsduring the period. Bowen's standard cost card for its only product is as follows:(1)Standard(2)StandardPriceor Rate$17.00 per yard$14.00 per hourStandardInputsDirect materialsDirect laborFixed manufacturing overheadQuantity orHours4.4 yards3.8 hoursCost(1) x (2)$ 74.8053.2076.003.8 hours$20.00 per hourTotal standard cost per unit$204.00Required:1. When recording the raw material purchases:a. The Raw Materials inventory will increase (decrease) by how much?b. The Cash will increase (decrease) by how much?2. When recording the raw materials used in production:a. The Raw Materials inventory will increase (decrease) by how much?b. The Work in Process inventory will increase (decrease) by how much?3. When recording the direct labor costs added to production:a. The Work in Process inventory will increase (decrease) by how much?b. The Cash will increase (decrease) by how much?4. When applying fixed manufacturing overhead to production, the Work in Process inventory will increase (decrease) by how much?5. When transferring manufacturing costs from Work in Process to Finished Goods, the Finished Goods inventory will increase(decrease) by how much?

Name: Bowen Company manufactures one product, it does not maintain any begi
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Bowen Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard costsystem. Its predetermined overhead rate includes $1,000,000 of fixed overhead in the numerator and 50,000 direct labor-hour