NEED HELP FINISHING THE SHEET Bunnell Corporation is a manufacturer that uses jo
ID: 2337074 • Letter: N
Question
NEED HELP FINISHING THE SHEET
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials $40,000 Work in process 18,000 Finished goods 35,0e8 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 of the raw materials were used as direct materials.Explanation / Answer
Raw material
Debit
Credit
Balance
Beg. Bal
$ 40,000.00
(a)
$ 510,000.00
$ 550,000.00
(b)
$ 480,000.00
$ 70,000.00
End. Bal
$ 70,000.00
.(a) Represent raw material purchased
(b) Represent raw material used.
Working
Beginning balance of Raw material
$ 40,000.00
Add: Raw material Purchased
$ 510,000.00
Total raw material Available for use
$ 550,000.00
Less: Raw material used
$ 480,000.00
Ending balance of raw material
$ 70,000.00
Note :- Student is advised to make necessary changes if the actual format does not match. Although final Answer will match.
Raw material
Debit
Credit
Balance
Beg. Bal
$ 40,000.00
(a)
$ 510,000.00
$ 550,000.00
(b)
$ 480,000.00
$ 70,000.00
End. Bal
$ 70,000.00
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