[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:
|Work in process||$||33,600|
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:
12. What is the ending balance in Finished Goods?
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?
14. What is the gross margin for the year?
15. What is the net operating income for the year?
|b.||Work in process inventory||646,400|
|Raw materials inventory||646,400|
|2)||Ending balance in Raw Materials|
|c.||Work in process inventory||490,000|
|Selling & administrative salaries||319,000|
|Factory wages payable||959,000|
|4)||Manufacturing overhead applied||(41000*13.50)||553500||answer|
|5)||Total manufacturing cost added during the year|
|total manufacturing cost||1,689,900||answer|
|g.||Finished goods inventory||1,623,300|
|Work in process inventory||1,623,300|
|7)||Work in process|
|8)||total actual manufacturing overhead cost||540,000||answer|
|Various manfuacturing cost||390,000|
|10)||Cost of goods available for sale||1,661,700||answer|
|h.||cost of good sold||1,690,000|
|Finished goods inventory||1,690,000|
|12)||Finished goods||Finished Goods|
|13)||Adjusted cost of goods sold||1,619,800|
|(sales - adjusted cost of goods sold)|
|15)||Net operating income||1,185,700||answer|
|Selling & adm salaries||-319,000|
|Various selling & adm||-423,000|
|Net operating income||1,185,700|
[The following information applies to the questions displayed below.] Bunnell Corporation is a manufacturer that uses jo...