Bunnell Corporation is a manufacturer that uses job-order
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows:
Work in process$32,000
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 $13.00 per direct labor-hour was based on a cost formula that estimated $520,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year:
- Raw materials were purchased on account, $584,000.
- Raw materials use in production, $537,600. All of of the raw materials were used as direct materials.
- The following costs were accrued for employee services: direct labor, $470,000; indirect labor, $150,000; selling and administrative salaries, $249,000.
- Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $464,000.
- Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $370,000.
- Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.
- Jobs costing $1,478,700 to manufacture according to their job cost sheets were completed during the year.
- Jobs were sold on account to customers during the year for a total of $3,367,500. The jobs cost $1,488,700 to manufacture according to their job cost sheets.
Additional Information I have calculated:
Ending Balance of Raw Material: 109,900
manufacturing overhead applied to production during the year: 533,000
Ending Balance of Work in Process: 93,900
manufacturing overhead over applied for the year by: 13,000
Ending Balance of Finished Goods: 26,000
- What is the journal entry to record the transfer of completed jobs that is referred to in item g above?
- I know to debit Finished goods and Credit work in Process, but for how much?
- What is the total manufacturing cost added to Work in Process during the year?
- What is the total amount of actual manufacturing overhead cost incurred during the year?
- What is the cost of goods available for sale during the year?
- What is the journal entry to record the cost of goods sold referred to in item h above?
- I know to debit Cost of Goods sold and Credit Finished goods but for how much?
- 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?
- What is the gross margin for the year?
- What is the net operating income for the year?