Chapter 3, Problem 2F15

Bunnell Corporation is a manufacturer tint uses job-order costing. On January l, the company's inventory balances were as follow:
L03-1, L03-2, L03-3, L03-4

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, $4S0.000. All of the raw materials were used as direct materials.
c. The following costs were accrued for employee services, direct labor, $600,000; indirect labor, $150,000 selling and administrative salaries. $240.000.
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and fished goods $367,000.
e. Incurredmanufacturing overhead costs (e.g., depreciation, insurance. and utilities), $500,000.
f. Manufacturing overhead cost was applied to production. The company actually worked 41 direct labor-hours on all jobs during the year.
g. Jobs costing S 1.680,000 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 $2,800.000. The jobs cost $1,690,000 to manufacture according to their job cost sheets.
 Required:
2. What is the ending balance in raw materials?