![Required information [The following information applles 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: 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 $12.75
per direct labor-hour was based on a cost formula that estimated $510 , 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,
$654 , 000 . b. Raw materials used in production, $618 , 800 . All of of the raw materials were
used as direct materials. c. The following costs were accrued for employee services: direct labor,
$460 , 000 ; indirect labor, $150 , 000 ; selling and administrative salaries, $270 , 000 . d.
Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and
finished goods warehousing), $417 , 000 . e. Incurred various manufacturing overhead costs (e.g-
depreciation, insurance, and utilities), $360 , 000 . f. Manufacturing overhead cost was applied to
production. The company actually worked 41,000 direct labor-hours on all jobs during the yeor.
9. Jobs costing $1 , 539 , 250 to manufacture according to their job cost sheets were completed
during the year. h. Jobs were soid on account to customers during the year for a total of $3 , 172 ,
500 . The jobs cost $1 , 549 , 250 to manufacture according to their job cost sheets. Required: 1.
What is the journal entry to record raw materials used in production? (If no entry is required for a
transaction/event, select "No Journal entry required in the first account field.) Journal entry
worksheet Note: Enter debits before credits.](https://image.slidesharecdn.com/requiredinformation-thefollowinginformationappllestothequestio1-230221014238-f98ac01d/85/required-information-the-following-information-applles-to-the-questio-1docx-1-320.jpg)
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Job-order costing overview and transactions
- 1. Required information [The following information applles 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: 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 $12.75 per direct labor-hour was based on a cost formula that estimated $510 , 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, $654 , 000 . b. Raw materials used in production, $618 , 800 . All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $460 , 000 ; indirect labor, $150 , 000 ; selling and administrative salaries, $270 , 000 . d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $417 , 000 . e. Incurred various manufacturing overhead costs (e.g- depreciation, insurance, and utilities), $360 , 000 . f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the yeor. 9. Jobs costing $1 , 539 , 250 to manufacture according to their job cost sheets were completed during the year. h. Jobs were soid on account to customers during the year for a total of $3 , 172 , 500 . The jobs cost $1 , 549 , 250 to manufacture according to their job cost sheets. Required: 1. What is the journal entry to record raw materials used in production? (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.) Journal entry worksheet Note: Enter debits before credits.